A month has gone by since the last earnings report for AmerisourceBergen Corporation (Holding Co) . Shares have added about 4.1% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
AmerisourceBergen Q1 Earnings Beat, Revenues Lag
AmerisourceBergen posted earnings (excluding one-time items) of $1.36 per share in the first quarter of fiscal 2017 (ended Dec 31, 2016), beating the Zacks Consensus Estimate of $1.24 and increasing from $1.27 earned in the year-ago quarter.
Moreover, revenues improved 4.0% to $38.2 billion in the reported quarter. However, reported revenues were below the Zacks Consensus Estimate of $39.1 billion.
Quarter in Detail
In the reported quarter, revenues at the Pharmaceutical Distribution segment (including AmerisourceBergen Drug Corp. (ABDC) and AmerisourceBergen Specialty Group (ABSG)) increased 3.9% to $36.6 billion. Within the segment, ABDC revenues were up 3.6% primarily on the back of solid organic sales growth.
The ABSG unit also performed impressively during the quarter, with revenues surging 10.3% year over year on the back of overall strong performance. Of this, sales of oncology products benefited greatly owing to higher intake from community oncologists. Increased sales in the company’s third-party logistics business also contributed to the rise.
Revenues at the Other segment (AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply) came in at $1.7 billion, up 5.4%.
In the first quarter of fiscal 2017, operating expenses were $638 million compared with $1.1 billion in the same period last fiscal year. Operating expenses as a percentage of revenue in the fiscal 2017 first quarter were 1.67% compared with 3.11% for the same period in the year-ago quarter.
Guidance
AmerisourceBergen expects fiscal 2017 revenue growth in the range of 6.5% to 8%. The company expects adjusted diluted earnings per share for fiscal 2017 in the range of $5.72 to $5.92.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, AmerisourceBergen's stock has a nice Growth Score of 'B', a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than growth and momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
Image: Bigstock
AmerisourceBergen (ABC) Up 4.1% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for AmerisourceBergen Corporation (Holding Co) . Shares have added about 4.1% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
AmerisourceBergen Q1 Earnings Beat, Revenues Lag
AmerisourceBergen posted earnings (excluding one-time items) of $1.36 per share in the first quarter of fiscal 2017 (ended Dec 31, 2016), beating the Zacks Consensus Estimate of $1.24 and increasing from $1.27 earned in the year-ago quarter.
Moreover, revenues improved 4.0% to $38.2 billion in the reported quarter. However, reported revenues were below the Zacks Consensus Estimate of $39.1 billion.
Quarter in Detail
In the reported quarter, revenues at the Pharmaceutical Distribution segment (including AmerisourceBergen Drug Corp. (ABDC) and AmerisourceBergen Specialty Group (ABSG)) increased 3.9% to $36.6 billion. Within the segment, ABDC revenues were up 3.6% primarily on the back of solid organic sales growth.
The ABSG unit also performed impressively during the quarter, with revenues surging 10.3% year over year on the back of overall strong performance. Of this, sales of oncology products benefited greatly owing to higher intake from community oncologists. Increased sales in the company’s third-party logistics business also contributed to the rise.
Revenues at the Other segment (AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply) came in at $1.7 billion, up 5.4%.
In the first quarter of fiscal 2017, operating expenses were $638 million compared with $1.1 billion in the same period last fiscal year. Operating expenses as a percentage of revenue in the fiscal 2017 first quarter were 1.67% compared with 3.11% for the same period in the year-ago quarter.
Guidance
AmerisourceBergen expects fiscal 2017 revenue growth in the range of 6.5% to 8%. The company expects adjusted diluted earnings per share for fiscal 2017 in the range of $5.72 to $5.92.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
AmerisourceBergen Corporation (Holding Co) Price and Consensus
AmerisourceBergen Corporation (Holding Co) Price and Consensus | AmerisourceBergen Corporation (Holding Co) Quote
VGM Scores
At this time, AmerisourceBergen's stock has a nice Growth Score of 'B', a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than growth and momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.