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Baird increased its price target from $955 to $1015 after the company reported better-than-expected results. This new target is roughly in line with the average analyst target of $1008. It suggests the firm sees more room for the stock to rise as the company shifts toward higher-margin healthcare services.
Source: Robert W. Baird
The company reported adjusted earnings of $9.93 per share, which was higher than the $9.56 analysts expected. Revenue grew 8 percent to about $105.4 billion. This growth was led by the oncology and specialty drug businesses, which are more profitable than the core work of moving standard pills to pharmacies.
Management raised its full-year profit forecast to a range of $44.20 to $45.00 per share. The company also hiked its quarterly dividend by 15 percent to $0.94 and spent $2.25 billion buying back its own shares. These moves show the company is generating plenty of cash and is confident it can keep growing its specialized healthcare services.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The board declared a dividend of $0.94 per share, up from $0.82 previously. This is the tenth year in a row the company has raised its payout. For a long-term owner, this steady growth in the dividend reflects the reliable cash flow generated by its massive drug distribution network.
Source: Business Wire
Management consistently sets a bar they can clear, beating profit estimates in seven of the last eight quarters. This track record makes their recent raise to full-year guidance look credible.
| Expectation | |
|---|---|
| EPS | $10.76 |
| Revenue | $109.94B |