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AmerisourceBergen (ABC) Q1 Earnings Beat, Revenues Lag
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AmerisourceBergen Corporation posted earnings (excluding one-time items) of $1.36 per share in the first quarter of fiscal 2017 (ended Dec 31, 2016), beating the Zacks Consensus Estimate of $1.24 and increasing from $1.27 earned in the year-ago quarter.
Moreover, revenues improved 4.0% to $38.2 billion in the reported quarter. However, reported revenues were below the Zacks Consensus Estimate of $39.1 billion.
Stock Performance
AmerisourceBergen outperformed the Zacks categorized Medical/Dental Supplies sub industry over the last three months, helped by its forecast-topping earnings performance. The company’s shares returned 19.82% over this period compared with the industry’s gain of around 6.77%.
Quarter in Detail
In the reported quarter, revenues at the Pharmaceutical Distribution segment (including AmerisourceBergen Drug Corp. (ABDC) and AmerisourceBergen Specialty Group (ABSG)) increased 3.9% to $36.6 billion. Within the segment, ABDC revenues were up 3.6% primarily on the back of solid organic sales growth.
The ABSG unit also performed impressively during the quarter, with revenues surging 10.3% year over year on the back of overall strong performance. Of this, sales of oncology products benefited greatly owing to higher intake from community oncologists. Increased sales in the company’s third-party logistics business also contributed to the rise.
Revenues at the Other segment (AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply) came in at $1.7 billion, up 5.4%.
In the first quarter of fiscal 2017, operating expenses were $638 million compared with $1.1 billion in the same period last fiscal year. Operating expenses as a percentage of revenue in the fiscal 2017 first quarter were 1.67% compared with 3.11% for the same period in the year-ago quarter.
Guidance
AmerisourceBergen expects fiscal 2017 revenue growth in the range of 6.5% to 8%. The company expects adjusted diluted earnings per share for fiscal 2017 in the range of $5.72 to $5.92.
AmerisourceBergen Corporation (Holding Co) Price, Consensus and EPS Surprise
AmerisourceBergen currently carries a Zacks Rank #2 (Buy). Other favorably ranked medical stocks are OraSure Technologies, Inc. (OSUR - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . OraSure sports a Zacks Rank 1 (Strong Buy) while Cardiovascular Systems carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
OraSure Technologies gained 58.3% in the last one year in comparison to the S&P 500’s 18.3%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 24.6% in the past one year, better than the S&P 500 mark. The stock has impressive long-term earnings growth of 16.7% for the next five years compared with the industry average of 15.2%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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AmerisourceBergen (ABC) Q1 Earnings Beat, Revenues Lag
AmerisourceBergen Corporation posted earnings (excluding one-time items) of $1.36 per share in the first quarter of fiscal 2017 (ended Dec 31, 2016), beating the Zacks Consensus Estimate of $1.24 and increasing from $1.27 earned in the year-ago quarter.
Moreover, revenues improved 4.0% to $38.2 billion in the reported quarter. However, reported revenues were below the Zacks Consensus Estimate of $39.1 billion.
Stock Performance
AmerisourceBergen outperformed the Zacks categorized Medical/Dental Supplies sub industry over the last three months, helped by its forecast-topping earnings performance. The company’s shares returned 19.82% over this period compared with the industry’s gain of around 6.77%.
Quarter in Detail
In the reported quarter, revenues at the Pharmaceutical Distribution segment (including AmerisourceBergen Drug Corp. (ABDC) and AmerisourceBergen Specialty Group (ABSG)) increased 3.9% to $36.6 billion. Within the segment, ABDC revenues were up 3.6% primarily on the back of solid organic sales growth.
The ABSG unit also performed impressively during the quarter, with revenues surging 10.3% year over year on the back of overall strong performance. Of this, sales of oncology products benefited greatly owing to higher intake from community oncologists. Increased sales in the company’s third-party logistics business also contributed to the rise.
Revenues at the Other segment (AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply) came in at $1.7 billion, up 5.4%.
In the first quarter of fiscal 2017, operating expenses were $638 million compared with $1.1 billion in the same period last fiscal year. Operating expenses as a percentage of revenue in the fiscal 2017 first quarter were 1.67% compared with 3.11% for the same period in the year-ago quarter.
Guidance
AmerisourceBergen expects fiscal 2017 revenue growth in the range of 6.5% to 8%. The company expects adjusted diluted earnings per share for fiscal 2017 in the range of $5.72 to $5.92.
AmerisourceBergen Corporation (Holding Co) Price, Consensus and EPS Surprise
AmerisourceBergen Corporation (Holding Co) Price, Consensus and EPS Surprise | AmerisourceBergen Corporation (Holding Co) Quote
Zacks Rank & Key Picks
AmerisourceBergen currently carries a Zacks Rank #2 (Buy). Other favorably ranked medical stocks are OraSure Technologies, Inc. (OSUR - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . OraSure sports a Zacks Rank 1 (Strong Buy) while Cardiovascular Systems carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
OraSure Technologies gained 58.3% in the last one year in comparison to the S&P 500’s 18.3%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 24.6% in the past one year, better than the S&P 500 mark. The stock has impressive long-term earnings growth of 16.7% for the next five years compared with the industry average of 15.2%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>