Cencora (ABG) AI Stock Analysis

Company Guidance

For fiscal 27, Cencora expects adjusted diluted EPS to be in the range of $19.40 to $19.75, reflecting headline growth of 8% to 10%; excluding the assumed $0.35 impact of the mid fiscal year merger of MWI and Covetrus, adjusted EPS growth would be 10% to 12%. Consolidated revenue growth is expected to be in the range of 3% to 5%, operating income growth in the range of 4% to 6%, and excluding the businesses in other, adjusted operating income growth would be 8.5% to 11%; interest expense is expected to be in the range of $490 million to $510 million, the effective tax rate approximately 20%, full year diluted average shares outstanding approximately 190 million shares, additional fiscal 27 repurchases $1.25 billion, capital expenditures $1 billion, and adjusted free cash flow approximately $3.5 billion. Pharmaceutical distribution and services revenue growth is expected to be in the range of 4% to 6% and operating income growth 2% to 4%, including an approximate $20 million headwind related to the European distribution business; specialty pharmaceutical and provider services revenue growth is expected to be in the range of 9% to 14% and operating income growth in the range of 18% to 21%; revenue in other is expected to be approximately $3.5 billion and operating income in Other approximately $200 million; adjusted diluted EPS in the first quarter is expected to be approximately $4.55.