Pharmaceutical services company
AmerisourceBergen Corp.
(
ABC
) is scheduled to report its second quarter fiscal 2012 results
before the opening bell on April 26, 2012. The Zacks Consensus
Estimate for the second quarter is 81 cents (year-over-year
increase of 5.2%) on revenues of $20,056 million (year-over-year
increase of 1.5%).
First Quarter Recap
AmerisourceBergen's first quarter fiscal 2012 earnings increased
10.5% to 63 cents, in line with the Zacks Consensus Estimate.
Earnings were spurred by higher revenues and a lower share
count.
Total revenue for the quarter climbed 2.4% to $20.4 billion,
beating the Zacks Consensus Estimate of $20.0 billion. The increase
in revenues was the result of a 2.1% climb in AmerisourceBergen
Drug Corporation's revenue, and a 3.9% rise in AmerisourceBergen
Specialty Group revenue.
Agreement of Estimate Revisions
Over the last 30 days, 2 of the 11 analysts covering
AmerisourceBergen have increased their earnings estimates for the
second quarter of fiscal 2012. We believe that the upward revisions
reflect the benefits which the company will reap as a result of
distributing the generic versions of Lipitor and Zyprexa.
The generic versions of both
Pfizer Inc.
's (
PFE
) Lipitor and
Eli Lilly & Co.
's (
LLY
) Zyprexa were launched in the fourth quarter of calendar year
2011. Thus, the first quarter of calendar year 2012 (second quarter
of fiscal 2012) is the first full quarter in which
AmerisourceBergen will incorporate the sales of generic Lipitor and
Zyprexa.
We expect generic launches over regular intervals to aid the
company's bottom line, which is forecasted in the range of $2.74 to
$2.84 per share for fiscal 2012.
Magnitude of Estimate Revisions
The earnings estimate revision witnessed over the last month
were almost negligible for the second quarter of fiscal 2012.
However, earnings estimate for fiscal 2012 went up by a cent to
$2.82 per share over the last 30 days.
Surprise History
AmerisourceBergen has surpassed earnings estimates in three of
the last four quarters. The company, while missing estimates by
1.59% in the first quarter of fiscal 2012, recorded a maximum
positive surprise of 11.59% in the second quarter of 2011. On an
average, the earnings surprise was 5.13%.
Our View
We currently have a Neutral recommendation on AmerisourceBergen.
The stock carries a Zacks #3 Rank (Hold rating) in the short run.
We believe the company is well-positioned for growth given the
strong performance of its generics business. AmerisourceBergen
boasts a robust plasma and vaccine business, which are expected to
contribute strong revenues in the coming quarters.
However, AmerisourceBergen operates in a highly competitive
pharmaceutical distribution market, which has players like
Cardinal Health Inc.
(
CAH
) and
McKesson Corp.
(
MCK
).
AMERISOURCEBRGN (
ABC
): Free Stock Analysis Report
CARDINAL HEALTH (
CAH
): Free Stock Analysis Report
LILLY ELI & CO (
LLY
): Free Stock Analysis Report
MCKESSON CORP (
MCK
): Free Stock Analysis Report
PFIZER INC (
PFE
): Free Stock Analysis Report
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