What happened
After Premier (PINC +0.00%) announced pleasing fiscal 2018 fourth-quarter and full-year results, shares of the healthcare service provider focused on analytics and supply chain solutions jumped 12% as of 11:01 a.m. EDT Tuesday.
So what
Here's a look at the key headline numbers from the company's fiscal fourth quarter:
- Fourth-quarter sales jumped 8% to $434 million. The increase was driven by a 10% increase in supply chain services and a 2% bump in performance services revenue. For context, Wall Street was only expecting $412 million in revenue, so the result was a nice beat.
- Non-GAAP net income rose 35% to $94.8 million, or $0.70 per share. That also compares favorably to the $0.66 in adjusted earnings that the pros had forecast.
Image source: Getty Images.
Zooming out to the full year, here's what the company reported:
- Revenue jumped 14% to $1.66 billion.
- Non-GAAP net income increased 19% to $317.1 million.
- Non-GAAP EPS rose 22% to $2.31.
- The company completed its $200 million stock-buyback program during the year. A new $250 million stock-repurchase program has been implemented.
And here's what the company is projecting for fiscal 2019:
- Total revenue is expected to land between $1.72 billion and $1.79 billion. This represents growth of 4% to 8%.
- Non-GAAP EPS is expected to land between $2.60 and $2.72. This represents growth of 13% to 18%.
For context, Wall Street was expecting revenue and non-GAAP EPS of $1.75 billion and $2.66, respectively, for the year ahead.
Given the better-than-expected results and positive guidance, it isn't hard to figure out why shares are moving higher today.
Now what
CEO Susan DeVore's commentary on the year ahead was focused on how Premier will continue to drive steady growth for investors:
Our comprehensive, data-driven analytics and consulting services provide health systems with a total value proposition aimed at comprehensively reducing costs, improving quality and safety, and moving our industry towards value-based care. In partnership with our members, we are constantly striving to expand and evolve our offerings to leverage new technologies and capitalize on new opportunities emerging in the marketplace. We believe Premier will continue to deliver meaningful value for our members, meaningful growth for our company, and long-term return and value for our stockholders.
Overall, Premier's results show that the company is executing well. With a winning business model in place and a modest valuation, this looks like a great stock for healthcare investors to get to know.
