A month has gone by since the last earnings report for AmerisourceBergen Corporation (Holding Co) . Shares have added about 7.6% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
AmerisourceBergen Beats on Q2 Earnings, Lags Revenues
AmerisourceBergen Corporation posted adjusted earnings of $1.77 per share in the second quarter of fiscal 2017, beating the Zacks Consensus Estimate of $1.71 and increasing 5.4% on a year-over-year basis. The upside was primarily driven by a lower tax rate.
Revenues improved almost 4% to $37.1 billion in the reported quarter. However, reported revenues were lower than the Zacks Consensus Estimate of $38.3 billion.Revenue Segments
Pharmaceutical Distribution segment: In the reported quarter, revenues at the segment increased 4% to $35.5 billion. Within the segment, AmerisourceBergen Drug Corp. revenues were up 3.6%, primarily on the back of solid organic sales growth.
The AmerisourceBergen Specialty Group unit in the segment performed impressively during the quarter, with revenues rising 11% year over year, courtesy of strong oncology product sales and solid performance by the third-party logistics business.
Other segment: This segment includes AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply. Revenues at the segment came in at $1.7 billion, up 6% on a year-over-year basis.
Operating Performance
Operating expenses (as a percentage of revenues) in the second quarter were 1.57%, compared to 1.61% in the year-ago quarter.
Operating income (as a percentage of revenue) contracted 8 basis points (bps) to 1.58% in the quarter under review.
As a percentage of revenues, gross profit declined 12 bps in the reported quarter on a year-over-year basis to 3.15%.
Guidance
AmerisourceBergen expects fiscal 2017 revenue growth in the range of 5.5% to 6.5%, significantly lower than the previously provided band of 6.5% to 8%.
The company expects adjusted diluted earnings per share for fiscal 2017 in the band of $5.77 to $5.92, up from the previously provided $5.72 to $5.92.
Meanwhile, AmerisourceBergen expects brand drug inflation in the range of 7% to 9%.
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', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile 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 investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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AmerisourceBergen (ABC) Up 7.6% 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 7.6% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
AmerisourceBergen Beats on Q2 Earnings, Lags Revenues
AmerisourceBergen Corporation posted adjusted earnings of $1.77 per share in the second quarter of fiscal 2017, beating the Zacks Consensus Estimate of $1.71 and increasing 5.4% on a year-over-year basis. The upside was primarily driven by a lower tax rate.
Revenues improved almost 4% to $37.1 billion in the reported quarter. However, reported revenues were lower than the Zacks Consensus Estimate of $38.3 billion.Revenue Segments
Pharmaceutical Distribution segment: In the reported quarter, revenues at the segment increased 4% to $35.5 billion. Within the segment, AmerisourceBergen Drug Corp. revenues were up 3.6%, primarily on the back of solid organic sales growth.
The AmerisourceBergen Specialty Group unit in the segment performed impressively during the quarter, with revenues rising 11% year over year, courtesy of strong oncology product sales and solid performance by the third-party logistics business.
Other segment: This segment includes AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply. Revenues at the segment came in at $1.7 billion, up 6% on a year-over-year basis.
Operating Performance
Operating expenses (as a percentage of revenues) in the second quarter were 1.57%, compared to 1.61% in the year-ago quarter.
Operating income (as a percentage of revenue) contracted 8 basis points (bps) to 1.58% in the quarter under review.
As a percentage of revenues, gross profit declined 12 bps in the reported quarter on a year-over-year basis to 3.15%.
Guidance
AmerisourceBergen expects fiscal 2017 revenue growth in the range of 5.5% to 6.5%, significantly lower than the previously provided band of 6.5% to 8%.
The company expects adjusted diluted earnings per share for fiscal 2017 in the band of $5.77 to $5.92, up from the previously provided $5.72 to $5.92.
Meanwhile, AmerisourceBergen expects brand drug inflation in the range of 7% to 9%.
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', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile 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 investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.