PINC Shares Stumble On Lower Than Expected Earnings And Revenue
Warrior Trading | Aug 23, 2016 09:29AM ET
Premier Inc (NASDAQ:PINC)
Premier, Inc. (PINC), a healthcare improvement company yesterday reported their fiscal fourth quarter 2016 financial results. Premier reported fourth quarter earnings of $0.36 per share which fell short of analyst expectations of $0.42 per share. Premier reported fourth quarter revenues increased 13% year over year to $301.4 million but fell short of analyst expectations of $311.76 million.
h3 Premier, Inc. CEO’s Comments/h3h3 PINC Technical Analysis/h3“We are very pleased with Premier’s strategic, operational and financial accomplishments in fiscal 2016,” said Susan DeVore, president and chief executive officer. “We achieved double-digit growth across all of the metrics for which we provide annual guidance, and we are targeting similar growth for fiscal 2017 consolidated results. Operationally, we attained a 97% retention rate in our group purchasing (GPO) business in Supply Chain Services and a 92% SaaS institutional renewal rate in Performance Services. This performance reflects the leverage inherent in our differentiated, member-aligned business model, as we continue to deliver compelling solutions for health systems to drive down costs, improve quality and safety, and transition to population health management in the shifting and increasingly complex healthcare environment. We continued to expand business relationships across our supply chain and performance services platforms, ending fiscal 2016 with approximately 3,750 member hospitals and more than 130,000 other providers, and generating more than $48 billion in purchasing volume through our GPO. We believe we have successfully executed on our growth strategy and continue to evaluate acquisition and investment opportunities that can provide additional value to our members and long-term growth for our stockholders.” Business Wire
PINC opened trading yesterday at $32.93 which was up from the previous days trading of $32.84. PINC closed trading yesterday at $33.74 and crashed down after market to $30.99, equivalent to a 8% decrease from the closing price. Taking a look at the daily chart we can see the last time PINC traded below these levels we have to go back to June 27th when it traded at lows of $30.87. Taking a closer look at the daily chart we can see that PINC had been in a upward trend dating back to May 26th when it traded at $30.82. PINC has a float of 41.55 million shares and traded 2.20 times the normal daily trading volume on Monday. For trading purposes, I would like to see PINC open trading on Tuesday below $32.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
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Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services; and software-as-a-service informatics products. This segment also engages in the specialty pharmacy and direct sourcing businesses; and in the provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices.
The Performance Services segment offers PremierConnect, an integrated data warehouse and technology platform infrastructure for continuous performance improvement; and performance improvement collaborative, advisory, and insurance services. This segment provides various domains comprising PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Safety domain to enhance patient safety; PremierConnect Supply Chain domain for lowering supply chain costs; PremierConnect Operations domain to build a sustainable infrastructure for labor management; PremierConnect Population Health domain for the transition of value-based care; and PremierConnect Enterprise domain offers business intelligence and self-service analytics solutions to health systems and providers. Premier, Inc. is headquartered in Charlotte, North Carolina.
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