Cencora shares fall on weak quarterly outlook

Shares of Cencora fell on Tuesday after the drug distributor issued a weaker-than-anticipated outlook for the current quarter, citing softer demand and pricing pressures in its core pharmaceutical distribution business.

The company, formerly known as AmerisourceBergen, said it expects adjusted earnings per share for the three months ending Dec. 31 to fall below analysts' estimates, though it did not provide a specific figure. The guidance reflects a slowdown in prescription volume growth and continued competition in the wholesale distribution sector.

Cencora reported third-quarter adjusted earnings of $3.21 per share, beating Wall Street forecasts, but its revenue of $64.8 billion missed expectations. The company also lowered its full-year adjusted earnings guidance to a range of $12.50 to $12.75 per share, down from its prior estimate of $12.75 to $13.00.

Analysts at Jefferies downgraded Cencora to a hold rating, citing the weaker outlook and margin compression. The stock was down 4.2% in premarket trading, extending losses from Monday’s 3.1% decline.

Cencora’s business model relies heavily on distributing pharmaceuticals to hospitals, pharmacies, and clinics. The company has faced increasing scrutiny over drug pricing and supply chain efficiency in recent years, though it remains a key player in the U.S. healthcare distribution market.