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PharMerica (PMC) Q2 Earnings in Line, Revenues Beat
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PharMerica reported second-quarter 2016 adjusted earnings of 47 cents per share, which were in line with the Zacks Consensus Estimate but were well ahead of the year-ago equivalent of 33 cents.
Revenue Details
Revenues increased 4.4% year over year to $519.6 million, beating the Zacks Consensus Estimate of $510 million. The improvement has been primarily driven by significant organic growth and acquisitions in the company’s specialty businesses. This was somewhat offset by a 2.8% deterioration in prescription volumes in its institutional pharmacy business.
However, gross profit in the second quarter grew 0.7% from the year-ago quarter to $81.8 million, primarily driven by higher revenues in the company’s specialty business, partially offset by lower Medicare Part D reimbursement.
The operating margin contracted by 20 basis points owing to lower operating expenses.
Adjusted EBITDA in the second quarter was $31.8 million, an increase of 1% from the year-ago quarter, primarily attributed to growth in the diversified pharmacy business.
Buyout News
PharMerica recently completed the acquisition of Premier Rx. This buyout will help the company in expanding its institutional pharmacies in St. Louis and Kansas City metro.
For full-year 2016, adjusted earnings per share (EPS) is expected in the range of $1.95 to $2.05. PharMerica anticipates revenues for the year in the band of $2.1 billion to $2.2 billion.
Adjusted EBITDA is projected in the $130.3 million to $135.3 million range.
Management expects at least $100 million in revenues from its recent acquisitions, by the end of 2016.
For 2017 and beyond, the company is confident that its diversified pharmacy revenues will exceed $700 million, and will drive the top line as well as adjusted EBITDA.
Zacks Rank and Key Picks
PharMerica carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical sector include Natus Medical Inc. , Heska Corporation and Masimo Corporation (MASI - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy).
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PharMerica (PMC) Q2 Earnings in Line, Revenues Beat
PharMerica reported second-quarter 2016 adjusted earnings of 47 cents per share, which were in line with the Zacks Consensus Estimate but were well ahead of the year-ago equivalent of 33 cents.
Revenue Details
Revenues increased 4.4% year over year to $519.6 million, beating the Zacks Consensus Estimate of $510 million. The improvement has been primarily driven by significant organic growth and acquisitions in the company’s specialty businesses. This was somewhat offset by a 2.8% deterioration in prescription volumes in its institutional pharmacy business.
However, gross profit in the second quarter grew 0.7% from the year-ago quarter to $81.8 million, primarily driven by higher revenues in the company’s specialty business, partially offset by lower Medicare Part D reimbursement.
The operating margin contracted by 20 basis points owing to lower operating expenses.
Adjusted EBITDA in the second quarter was $31.8 million, an increase of 1% from the year-ago quarter, primarily attributed to growth in the diversified pharmacy business.
Buyout News
PharMerica recently completed the acquisition of Premier Rx. This buyout will help the company in expanding its institutional pharmacies in St. Louis and Kansas City metro.
PHARMERICA CORP Price, Consensus and EPS Surprise
PHARMERICA CORP Price, Consensus and EPS Surprise | PHARMERICA CORP Quote
Guidance
For full-year 2016, adjusted earnings per share (EPS) is expected in the range of $1.95 to $2.05. PharMerica anticipates revenues for the year in the band of $2.1 billion to $2.2 billion.
Adjusted EBITDA is projected in the $130.3 million to $135.3 million range.
Management expects at least $100 million in revenues from its recent acquisitions, by the end of 2016.
For 2017 and beyond, the company is confident that its diversified pharmacy revenues will exceed $700 million, and will drive the top line as well as adjusted EBITDA.
Zacks Rank and Key Picks
PharMerica carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical sector include Natus Medical Inc. , Heska Corporation and Masimo Corporation (MASI - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>