Results: Premier, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Premier, Inc. (NASDAQ:PINC) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$261m, some 8.0% above estimates, and statutory earnings per share (EPS) coming in at US$0.31, 20% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the eight analysts covering Premier provided consensus estimates of US$970.3m revenue in 2026, which would reflect a painful 23% decline over the past 12 months. Statutory earnings per share are expected to drop 18% to US$1.07 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$977.2m and earnings per share (EPS) of US$1.06 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Premier

The analysts reconfirmed their price target of US$20.43, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Premier at US$24.00 per share, while the most bearish prices it at US$19.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Premier's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 19% to the end of 2026. This tops off a historical decline of 3.5% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.0% annually. So while a broad number of companies are forecast to grow, unfortunately Premier is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Premier's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Premier going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Premier (1 is a bit unpleasant) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.