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Is a Beat Likely for AmerisourceBergen (ABC) in Q3 Earnings?
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AmerisourceBergen Corporation is scheduled to release third-quarter fiscal 2022 results on Aug 3, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 7.69%. Its earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 4.01%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter fiscal 2022 revenues is pegged at $58.91 billion, indicating an improvement of 10.3% from the prior-year quarter. The consensus mark for earnings stands at $2.57, suggesting growth of 19% from the year-ago reported figure.
Factors to Note
Sustained growth in specialty product sales, including COVID-19 treatments and overall market growth, at this U.S. Healthcare Solutions segment may have favored the fiscal third-quarter performance. With respect to this segment, revenues are expected in the band of $207 billion to $212 billion in fiscal 2022, representing growth of 2-5%. Consequently, this may get reflected in the fiscal third-quarter results.
In fiscal 2022, operating income at this segment is anticipated between $2.42 billion and $2.48 billion, reflecting growth of 7-10%. This, in turn, is likely to get reflected in the fiscal third-quarter results.
Apart from this, the World Courier unit is likely to have exhibited solid performance in the fiscal third quarter. In fact, World Courier’s impressive track record as an international leader in specialty logistics has enabled AmerisourceBergen to lend support to customers globally despite a challenging COVID-induced environment and additional operational challenges.
Per management, AmerisourceBergen continues to play a crucial role as the distributor of antiviral and antibody therapies used to treat COVID-19.
Per the fiscal 2022 guidance, operating income at the International Healthcare solutions segment is estimated to improve in the range of $685 million to $715 million. This, in turn, is likely to get reflected in the fiscal third-quarter results.
Earnings Beat Likely
Our proven model predicts an earnings beat for AmerisourceBergen this time around. 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($2.63 per share) and the Zacks Consensus Estimate ($2.57 per share), is +2.16%.
Here are a few medical stocks also worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is Zacks #1 Ranked stock. STE has an earnings yield of 4% against the industry’s negative yield.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Henry Schein (HSIC - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 3. HSIC has an estimated long-term growth rate of 11.7%.
Henry Schein’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 15.05%.
Laboratory Corp. of America (LH - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank of 3 at present. LH has an earnings yield of 7.96%, which compares favorably with the industry’s yield of 4.61%.
Laboratory Corp. of America’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 17.58%.
Image: Bigstock
Is a Beat Likely for AmerisourceBergen (ABC) in Q3 Earnings?
AmerisourceBergen Corporation is scheduled to release third-quarter fiscal 2022 results on Aug 3, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 7.69%. Its earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 4.01%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter fiscal 2022 revenues is pegged at $58.91 billion, indicating an improvement of 10.3% from the prior-year quarter. The consensus mark for earnings stands at $2.57, suggesting growth of 19% from the year-ago reported figure.
Factors to Note
Sustained growth in specialty product sales, including COVID-19 treatments and overall market growth, at this U.S. Healthcare Solutions segment may have favored the fiscal third-quarter performance. With respect to this segment, revenues are expected in the band of $207 billion to $212 billion in fiscal 2022, representing growth of 2-5%. Consequently, this may get reflected in the fiscal third-quarter results.
In fiscal 2022, operating income at this segment is anticipated between $2.42 billion and $2.48 billion, reflecting growth of 7-10%. This, in turn, is likely to get reflected in the fiscal third-quarter results.
Apart from this, the World Courier unit is likely to have exhibited solid performance in the fiscal third quarter. In fact, World Courier’s impressive track record as an international leader in specialty logistics has enabled AmerisourceBergen to lend support to customers globally despite a challenging COVID-induced environment and additional operational challenges.
AmerisourceBergen Corporation Price and Consensus
AmerisourceBergen Corporation price-consensus-chart | AmerisourceBergen Corporation Quote
Per management, AmerisourceBergen continues to play a crucial role as the distributor of antiviral and antibody therapies used to treat COVID-19.
Per the fiscal 2022 guidance, operating income at the International Healthcare solutions segment is estimated to improve in the range of $685 million to $715 million. This, in turn, is likely to get reflected in the fiscal third-quarter results.
Earnings Beat Likely
Our proven model predicts an earnings beat for AmerisourceBergen this time around. 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($2.63 per share) and the Zacks Consensus Estimate ($2.57 per share), is +2.16%.
Zacks Rank: AmerisourceBergen carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are a few medical stocks also worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is Zacks #1 Ranked stock. STE has an earnings yield of 4% against the industry’s negative yield.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Henry Schein (HSIC - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 3. HSIC has an estimated long-term growth rate of 11.7%.
Henry Schein’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 15.05%.
Laboratory Corp. of America (LH - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank of 3 at present. LH has an earnings yield of 7.96%, which compares favorably with the industry’s yield of 4.61%.
Laboratory Corp. of America’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 17.58%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.