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AmerisourceBergen (ABC) to Post Q2 Earnings: What's in Store?
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AmerisourceBergen Corporation is scheduled to release second-quarter fiscal 2021 results on May 5, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 12.4%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 8.9%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter fiscal 2021 revenues is pegged at $49.94 billion, indicating an improvement of 5.3% from the prior-year quarter. The consensus mark for earnings stands at $2.50, suggesting growth of 4.2% from the year-ago reported figure.
Pharmaceutical Distribution Unit: A Key Factor
Sustained growth in specialty product sales and expanding customer base at this segment are likely to have benefited the fiscal second-quarter performance. Notably, this segment serves healthcare providers in the pharmaceutical supply channel. Solid organic growth rates in the U.S. pharmaceutical market, population demographics and improving patient access to medical care might get reflected in the to-be-reported quarter’s results.
In fact, the Zacks Consensus Estimate for fiscal second-quarter revenues for this segment is pegged at $48.21 billion, suggesting growth of 5.8% from the year-ago reported figure.
AmerisourceBergen Corporation Price and EPS Surprise
Moreover, operating income at this segment is anticipated to improve in the high-single-digit percent range in fiscal 2021. Consequently, this is likely to get reflected in the fiscal second-quarter results.
Other Factors to Note
World Courier unit
The World Courier unit, in particular, is likely to have contributed to the Other segment’s performance in the fiscal second quarter. During fiscal first quarter, the business was able to provide improved services and navigate the complexity of moving materials worldwide despite the challenging environment, while boosting innovation with clinical trial in at-home settings. This trend is likely to have continued in the fiscal second quarter as well. Enhancing customer experience through new offerings, technology improvements and delivery of high tax logistics services might have contributed to the fiscal second-quarter performance.
The company’s to-be-reported quarter’s results are likely to reflect solid demand for its high touch global specialty logistics.
Other Segment
This segment comprises Global Commercialization Services and Animal Health, and includes World Courier, AmerisourceBergen Consulting and MWI. The segment may have contributed to the fiscal second-quarter performance, backed by growth across its three operating units — AmerisourceBergen Consulting Services, MWI Veterinary Supply and World Courier segments.
Apart from this, the company is likely to have gained from generics growth in the to-be-reported quarter. During fiscal third-quarter of 2020, AmerisourceBergen introduced two new offerings at its MWI Animal Health business, which have been developed to help veterinarians manage the financial impact of COVID-19. The new offerings enable practices to offer flexible financing solutions for clients, thereby lowering the financial burden of both routine and emergency pet care. The offerings have been helping the practices in achieving sustained revenue, long-term client engagement and improved patient outcomes. Hence, new product launches like this one may have contributed to overall results in fiscal second-quarter 2021.
However, adjusted operating expenses in fiscal 2021 are estimated to increase in the mid-to-high-single digit percent range. Consequently, the fiscal second-quarter results are likely to reflect this impact.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you will see.
Earnings ESP: AmerisourceBergen has an Earnings ESP of +0.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
DENTSPLY SIRONA (XRAY - Free Report) has an Earnings ESP of +11.36% and a Zacks Rank of 2.
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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AmerisourceBergen (ABC) to Post Q2 Earnings: What's in Store?
AmerisourceBergen Corporation is scheduled to release second-quarter fiscal 2021 results on May 5, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 12.4%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 8.9%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter fiscal 2021 revenues is pegged at $49.94 billion, indicating an improvement of 5.3% from the prior-year quarter. The consensus mark for earnings stands at $2.50, suggesting growth of 4.2% from the year-ago reported figure.
Pharmaceutical Distribution Unit: A Key Factor
Sustained growth in specialty product sales and expanding customer base at this segment are likely to have benefited the fiscal second-quarter performance. Notably, this segment serves healthcare providers in the pharmaceutical supply channel. Solid organic growth rates in the U.S. pharmaceutical market, population demographics and improving patient access to medical care might get reflected in the to-be-reported quarter’s results.
In fact, the Zacks Consensus Estimate for fiscal second-quarter revenues for this segment is pegged at $48.21 billion, suggesting growth of 5.8% from the year-ago reported figure.
AmerisourceBergen Corporation Price and EPS Surprise
AmerisourceBergen Corporation price-eps-surprise | AmerisourceBergen Corporation Quote
Moreover, operating income at this segment is anticipated to improve in the high-single-digit percent range in fiscal 2021. Consequently, this is likely to get reflected in the fiscal second-quarter results.
Other Factors to Note
World Courier unit
The World Courier unit, in particular, is likely to have contributed to the Other segment’s performance in the fiscal second quarter. During fiscal first quarter, the business was able to provide improved services and navigate the complexity of moving materials worldwide despite the challenging environment, while boosting innovation with clinical trial in at-home settings. This trend is likely to have continued in the fiscal second quarter as well. Enhancing customer experience through new offerings, technology improvements and delivery of high tax logistics services might have contributed to the fiscal second-quarter performance.
The company’s to-be-reported quarter’s results are likely to reflect solid demand for its high touch global specialty logistics.
Other Segment
This segment comprises Global Commercialization Services and Animal Health, and includes World Courier, AmerisourceBergen Consulting and MWI. The segment may have contributed to the fiscal second-quarter performance, backed by growth across its three operating units — AmerisourceBergen Consulting Services, MWI Veterinary Supply and World Courier segments.
Apart from this, the company is likely to have gained from generics growth in the to-be-reported quarter.
During fiscal third-quarter of 2020, AmerisourceBergen introduced two new offerings at its MWI Animal Health business, which have been developed to help veterinarians manage the financial impact of COVID-19. The new offerings enable practices to offer flexible financing solutions for clients, thereby lowering the financial burden of both routine and emergency pet care. The offerings have been helping the practices in achieving sustained revenue, long-term client engagement and improved patient outcomes. Hence, new product launches like this one may have contributed to overall results in fiscal second-quarter 2021.
However, adjusted operating expenses in fiscal 2021 are estimated to increase in the mid-to-high-single digit percent range. Consequently, the fiscal second-quarter results are likely to reflect this impact.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you will see.
Earnings ESP: AmerisourceBergen has an Earnings ESP of +0.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
McKesson Corporation (MCK - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DENTSPLY SIRONA (XRAY - Free Report) has an Earnings ESP of +11.36% and a Zacks Rank of 2.
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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