Benzinga | May 4, 2021 07:18AM EDT

Premier Beats On Q3 Earnings, Raises 2021 Outlook

* Premier Inc (NASDAQ: PINC) reported Q3 net revenue increased 40% year-on-year to $469.9 million, exceeding the consensus of $447.5M.

* Higher sales Supply Chain Services drove the revenue as it increased 56% Y/Y to $371.2 million.

* Products revenue of $216.0 million jumped 253% Y/Y, primarily driven by growth in commodity products and aggregated purchasing of certain other products and the company's ongoing efforts to provide certain personal protective equipment and other high-demand supplies.

* Performance Services segment revenue increased 3% to $98.7 million from $96.2 million a year ago.

* Adjusted EBITDA of $121.2 million decreased 22% Y/Y primarily due to the impact of the aforementioned amended GPO agreements and the non-cash amortization of prepaid contract administrative fees from the Acurity/Nexera asset acquisition.

* Adjusted EPS decreased 12% Y/Y to $0.64, beating the consensus of $0.55.

* On May 1, 2021, Michael J. Alkire assumed the chief executive officer role at the company.

* Guidance: Premier raised FY21 adjusted EPS Guidance from $2.26-$2.39 to $2.42-$2.51 higher than the analysts' consensus of $2.32.

* It sees FY21 sales in the range of $1.67 billion -$1.71 billion higher than the previous range of $1.61 billion - $1.65 billion and better than the consensus of $1.63 billion.

* Price Action: PINC shares closed 1.1% higher at $33.75 on Monday.