Cencora shares slide 18% after revenue outlook cut
Updated
Updated · MarketWatch · May 6
Cencora shares slide 18% after revenue outlook cut
5 articles · Updated · MarketWatch · May 6
The stock fell to $252.03 and hit a 52-week low after Cencora lowered expected full-year revenue growth to 4%-6% from 7%-9%.
Quarterly revenue rose 3.8% to $78.36 billion, missing forecasts, while adjusted EPS of $4.75 also fell short; executives cited slower GLP-1 growth and Inflation Reduction Act pricing pressure.
Cencora said the IRA cut sales by $2 billion and reduced U.S. revenue growth by 3%, while lost grocery and oncology customers and mail-order brand conversions added pressure.
With revenue falling but profit guidance rising, is Cencora a smart buy or a dangerous value trap for investors?
Can Cencora's global strategy overcome mounting pressure from U.S. regulations and major customer losses?