Shareholders might have noticed that Cencora, Inc. (NYSE:COR) filed its quarterly result this time last week. The early response was not positive, with shares down 3.1% to US$283 in the past week. Cencora reported US$75b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.68 beat expectations, being 7.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cencora after the latest results.

We've discovered 3 warning signs about Cencora. View them for free.NYSE:COR Earnings and Revenue Growth May 10th 2025

Taking into account the latest results, the most recent consensus for Cencora from 15 analysts is for revenues of US$321.4b in 2025. If met, it would imply a reasonable 3.6% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 42% to US$12.39. Before this earnings report, the analysts had been forecasting revenues of US$323.6b and earnings per share (EPS) of US$11.99 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Cencora

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.0% to US$315. 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. The most optimistic Cencora analyst has a price target of US$355 per share, while the most pessimistic values it at US$256. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Cencora's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.0% annually. Factoring in the forecast slowdown in growth, it looks like Cencora is forecast to grow at about the same rate as the wider industry.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cencora's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Cencora. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Cencora analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Cencora has  3 warning signs  we think 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.

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