) posted earnings (excluding employee severance, LIFO expense,
warrants, litigation, restructuring and acquisition costs) of 77
cents per share in the fourth quarter of fiscal 2013 (ended Sep
30, 2013), a penny down from the year-ago quarter.
The Zacks Consensus Estimate stands at 74 cents per share. As
per AmerisourceBergen, earnings per share came in at 79 cents,
excluding LIFO and warrants expense. However, earnings plunged
71.4% on a reported basis.
Revenues grew 28.3% to $24.5 billion in the fourth quarter of
fiscal 2013. The reported revenues surpassed the Zacks Consensus
Estimate of $23.8 billion.
Quarter in Detail
Following the acquisition of the World Courier Group in 2012,
AmerisourceBergen made some adjustments in its reporting format.
The company decided to report results of the AmerisourceBergen
Drug Corporation (ABDC) and AmerisourceBergen Specialty Group
(ABSG) units under the Pharmaceutical Distribution segment.
Results of the World Courier Group and AmerisourceBergen
Consulting Services (ABCS) have been clubbed under "Other."
Revenues from the Pharmaceutical Distribution segment
increased 29.0% to $24.1 billion during the fourth quarter.
Within this segment, revenues from the ABDC business increased
34.0% primarily due to the on-boarding of the new distribution
) and increased sales to a large pharmacy benefit management
The ABSG unit performed well during the quarter with revenues
increasing 12%. Results of the segment were driven by solid
performance in third party logistics, blood products, vaccine and
physician office distribution business.
Revenues from the Other segment were $433.6 million, up 3.0%
Gross profit (adjusted) for the quarter edged up 1.1% to
$721.5 million. Gross profit benefited from increased revenue
growth and strong performance in generic pharmaceuticals but was
partially offset by lower contributions from the Pharmaceutical
Operating expenses (adjusted) during the quarter grew 2.0% to
$402.9 million due to on-boarding of the contract with Walgreens
and Alliance Boots.
Full Year Details
For fiscal 2013, earnings (excluding employee severance, LIFO
expense, warrants, and litigation, restructuring and acquisition
costs) came in at $3.14 per share, beating the Zacks Consensus
Estimate of $3.08. Revenues in fiscal 2013 were up 12.7% to $87.9
AmerisourceBergen now expects earnings from continuing
operations to come in the range of $3.60 - $3.73 in fiscal 2014.
The pre-earnings Zacks Consensus Estimate of $3.66 per share is
well within the guidance. AmerisourceBergen expects revenues to
grow in the range of 28% - 31%.
We are encouraged by fourth quarter results and guidance for
fiscal 2014. We believe the distribution deal with Walgreens will
positively impact results in fiscal 2014.
AmerisourceBergen currently carries a Zacks Rank #3 (Hold).
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