Premier reports Q2 EPS 60c, consensus 57c

Reports Q2 revenue $334.7M, consensus $341.5M. “Our second quarter results reflect ongoing discipline in actively managing our business to meet our expectations for profitability,” said Michael J. Alkire, CEO. “Consolidated net revenue declined from the prior-year period primarily due a challenging revenue comparison for enterprise license agreements in our Performance Services segment and the impact of higher aggregate member fee share in our group purchasing business and continued market conditions in our direct sourcing business. I am pleased to announce that our Board of Directors has concluded its previously announced exploration of strategic alternatives. After a thorough review of options, the Board has decided to move forward with a more focused strategy predicated on automating and streamlining all aspects of the supply chain and leveraging our unique data, technologies and AI capabilities to support provider performance improvement and growth in certain adjacent markets. As a result, and to unlock value for stockholders, we previously sold our non-healthcare GPO operations and our Board has authorized the company to seek partners to potentially take ownership of some or all of Premier’s holdings in our direct sourcing business, S2S Global, and our direct-to-employer business, Contigo Health. We intend to find the right partners for these businesses that can make the necessary investments to enhance their future success. Additionally, the Board considered opportunities for deploying capital resources, including accelerating returns to stockholders. Based on this review, the Board has approved a new $1.0 billion share repurchase authorization, including implementation of a $400 million accelerated share repurchase transaction.”