AmerisourceBergen Earnings: Tops Profit View, Off the Revenue Mark

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S&P 500 (NYSE:SPY) component AmerisourceBergen Corporation (NYSE:ABC) reported its results for the third quarter. AmerisourceBergen is a pharmaceutical services company providing drug distribution and related healthcare services to pharmacy, physician, and manufacturer customers based in North America.

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AmerisourceBergen Corporation Earnings Cheat Sheet

Results: Net income for the retail-drug stores fell to $181.3 million (71 cents per share) vs. $184.4 million (66 cents per share) a year earlier. This is a decline of 1.7% from the year-earlier quarter.

Revenue: Fell 1.9% to $19.77 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AmerisourceBergen Corporation beat the mean analyst estimate of 69 cents per share. It fell short of the average revenue estimate of $20.36 billion.

Quoting Management: “In our June quarter, AmerisourceBergen delivered solid performance across all of its business units, and overcame a difficult comparison to the same quarter last year,” said Steven H. Collis, AmerisourceBergen President and Chief Executive Officer. “The results for both the quarter and year-to-date continue to demonstrate the value of our two primary growth drivers – generics and specialty pharmaceuticals. In addition, our demonstrated discipline in expense and working capital management continues to strengthen our operations and our balance sheet, and we continue to have tremendous financial flexibility. We have made outstanding progress in the integration of the acquisitions we have made this year, and we are more convinced than ever that they will make significant contributions to our growth in the years ahead.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 3.5%.

The company’s net income has fallen for two quarters in a row. In the second quarter, net income fell 1.1% from the year-earlier quarter.

The company beat estimates last quarter after meeting expectations in the second quarter with net income of 81 cents per share.

Looking Forward: The average estimate for the fourth quarter is steady at 68 cents a share. For the fiscal year, the average estimate has moved down from $2.82 a share to $2.81 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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