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AmerisourceBergen (ABC) Q4 Earnings & Revenues Top Estimates
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AmerisourceBergen Corporation reported fourth-quarter fiscal 2020 adjusted earnings per share (EPS) of $1.89 surpassing the Zacks Consensus Estimate of $1.87 by 1.1%. The bottom line also improved 17.4% year over year.
The better-than-expected bottom-line performance can be attributed to higher adjusted operating income and reduced share count.
For fiscal 2020, the company reported adjusted EPS of $7.90, which outpaced the Zacks Consensus Estimate by 0.3%. The figure increased 11.4% from the year-ago period.
Revenue Details
Revenues increased 7.9% to $49.24 billion in the reported quarter. Further, the top line beat the Zacks Consensus Estimate by 2.4%.
For fiscal 2020, the company’s revenues were $189.89 billion, up 5.7% from the year-ago period. The metric also beat the consensus mark by 0.6%.
Segmental Analysis
Pharmaceutical Distribution Segment
Revenues at this segment totaled $47.29 billion, reflecting an increase of 7.8% on a year-over-year basis on the back of higher volume related to growth of some of its largest customers and continued strength in specialty product sales.
Segmental operating income was $425.6 million, up 15.2% year over year. Increase in gross profit, exit of the PharMEDium compounding business and slight expense growth contributed to the upside.
AmerisourceBergen Corporation Price, Consensus and EPS Surprise
This segment includes AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply.
Revenues at this segment were $1.99 billion, up 10.8% year over year. The upside was driven by growth across all three operating segments.
Operating income in the segment was $104.5 million in the quarter, up 20.5% year over year primarily due to growth in World Courier.
Margin Analysis
In the quarter under review, AmerisourceBergen reported adjusted gross profit of $1.33 billion, up 6.4% on a year-over-year basis. As a percentage of revenues, adjusted gross margin was 2.7% in the quarter, which remained flat on a year-over-year basis.
The company reported adjusted operating income of $529.9 million, up 16.2% year over year. As a percentage of revenues, adjusted operating margin was 1.1% in the quarter, which remained flat year over year.
Fiscal 2021 Guidance
AmerisourceBergen provided fiscal 2021 outlook, indicating growth in both Pharmaceutical Distribution Services and businesses committed toward Global Commercialization Services & Animal Health.
Adjusted EPS is now estimated to be $8.20-$8.45. The Zacks Consensus Estimate is currently pegged at $8.40.
The company estimates revenue growth in the mid-single-digit percent range.
Adjusted operating income is now projected to grow in the mid-single digit percent range.
Operating income at Pharmaceutical Distribution Services segment is now anticipated to improve in the mid-single-digit percent range.
For the Other segment the metric is estimated to grow in the mid-single-digit percent range.
Adjusted free cash flow is estimated to be around $1.5 billion.
The company anticipates adjusted effective tax rate to be 21-22%.
Adjusted operating expenses is projected to increase in the mid-single-digit percent range.
Further, the company now anticipates weighted average diluted shares between 206 million and 207 million.
Summing Up
AmerisourceBergen exited the fiscal fourth quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company continues to gain from its Pharmaceutical segment and World Courier business, which have been generating substantial profits for quite some time. Moreover, the company witnessed increase in gross profit in the quarter under review.
Meanwhile, both gross and operating margins remained flat compared with the prior-year quarter. Notably, the company faces other headwinds like conversion of branded drugs and lower price generics. Cut-throat competition in the MedTech space also remains a concern.
Zacks Rank
Currently, AmerisourceBergen carries a Zacks Rank #2 (Buy).
Earnings of Other MedTech Majors at a Glance
Some other top-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Align Technology sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and AngoDynamics carry a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
AngioDynamics reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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AmerisourceBergen (ABC) Q4 Earnings & Revenues Top Estimates
AmerisourceBergen Corporation reported fourth-quarter fiscal 2020 adjusted earnings per share (EPS) of $1.89 surpassing the Zacks Consensus Estimate of $1.87 by 1.1%. The bottom line also improved 17.4% year over year.
The better-than-expected bottom-line performance can be attributed to higher adjusted operating income and reduced share count.
For fiscal 2020, the company reported adjusted EPS of $7.90, which outpaced the Zacks Consensus Estimate by 0.3%. The figure increased 11.4% from the year-ago period.
Revenue Details
Revenues increased 7.9% to $49.24 billion in the reported quarter. Further, the top line beat the Zacks Consensus Estimate by 2.4%.
For fiscal 2020, the company’s revenues were $189.89 billion, up 5.7% from the year-ago period. The metric also beat the consensus mark by 0.6%.
Segmental Analysis
Pharmaceutical Distribution Segment
Revenues at this segment totaled $47.29 billion, reflecting an increase of 7.8% on a year-over-year basis on the back of higher volume related to growth of some of its largest customers and continued strength in specialty product sales.
Segmental operating income was $425.6 million, up 15.2% year over year. Increase in gross profit, exit of the PharMEDium compounding business and slight expense growth contributed to the upside.
AmerisourceBergen Corporation Price, Consensus and EPS Surprise
AmerisourceBergen Corporation price-consensus-eps-surprise-chart | AmerisourceBergen Corporation Quote
Other Segment
This segment includes AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply.
Revenues at this segment were $1.99 billion, up 10.8% year over year. The upside was driven by growth across all three operating segments.
Operating income in the segment was $104.5 million in the quarter, up 20.5% year over year primarily due to growth in World Courier.
Margin Analysis
In the quarter under review, AmerisourceBergen reported adjusted gross profit of $1.33 billion, up 6.4% on a year-over-year basis. As a percentage of revenues, adjusted gross margin was 2.7% in the quarter, which remained flat on a year-over-year basis.
The company reported adjusted operating income of $529.9 million, up 16.2% year over year. As a percentage of revenues, adjusted operating margin was 1.1% in the quarter, which remained flat year over year.
Fiscal 2021 Guidance
AmerisourceBergen provided fiscal 2021 outlook, indicating growth in both Pharmaceutical Distribution Services and businesses committed toward Global Commercialization Services & Animal Health.
Adjusted EPS is now estimated to be $8.20-$8.45. The Zacks Consensus Estimate is currently pegged at $8.40.
The company estimates revenue growth in the mid-single-digit percent range.
Adjusted operating income is now projected to grow in the mid-single digit percent range.
Operating income at Pharmaceutical Distribution Services segment is now anticipated to improve in the mid-single-digit percent range.
For the Other segment the metric is estimated to grow in the mid-single-digit percent range.
Adjusted free cash flow is estimated to be around $1.5 billion.
The company anticipates adjusted effective tax rate to be 21-22%.
Adjusted operating expenses is projected to increase in the mid-single-digit percent range.
Further, the company now anticipates weighted average diluted shares between 206 million and 207 million.
Summing Up
AmerisourceBergen exited the fiscal fourth quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company continues to gain from its Pharmaceutical segment and World Courier business, which have been generating substantial profits for quite some time. Moreover, the company witnessed increase in gross profit in the quarter under review.
Meanwhile, both gross and operating margins remained flat compared with the prior-year quarter. Notably, the company faces other headwinds like conversion of branded drugs and lower price generics. Cut-throat competition in the MedTech space also remains a concern.
Zacks Rank
Currently, AmerisourceBergen carries a Zacks Rank #2 (Buy).
Earnings of Other MedTech Majors at a Glance
Some other top-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Align Technology sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and AngoDynamics carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
AngioDynamics reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>