) is scheduled to report third quarter fiscal 2013 results (ended
Mar 31, 2013) before the opening bell on Jul 24, 2013.
AmerisourceBergen, one of the world's largest pharmaceutical
services companies, has delivered positive earnings surprises in
two of the last four quarters with an average beat of
1.19%. Last quarter, earnings at AmerisourceBergen missed
the Zacks Consensus Estimate by 2 cents. Let's see how
things are shaping up this quarter.
Factors at Play
Revenues grew 4.1% to $20.5 billion in the second quarter of
fiscal 2013, primarily driven by the growth of pharmaceutical
AmerisourceBergen struck a 10-year deal with
) in Mar 2013, which is expected to add approximately $2 billion
to top line in fiscal 2013 and approximately $25 billion in 2014.
We believe that the Walgreens deal is a positive for the company.
Meanwhile, in order to streamline its operations, the company
sold its Canadian pharmaceutical distribution business, which was
facing tough market conditions for generics. Additionally,
AmerisourceBergen also sold AndersonBrecon, its contract
pharmaceutical packaging business in the US and the UK.
Weakness in the oncology business due to challenging
reimbursement rates and soft World Courier business continue to
be a matter of concern.
Our proven model does not conclusively show that
AmerisourceBergen will beat earnings this quarter. That is
because a stock needs to have both a positive Earnings ESP (Read:
ZACKS EARNINGS ESP: A BETTER METHOD
) and a Zacks Rank #1, #2 or #3 to be able to beat Zacks
Consensus Estimates. That is not the case here as you will see
The ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is 0.00%.
This is because both the Most Accurate Estimate and the Zacks
Consensus Estimate currently stand at 74 cents.
Zacks Rank #3 (Hold):
AmerisourceBergen's Zacks Rank #3 (Hold) when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
) has Earnings ESP of +2.19% and holds a Zacks Rank #3. Biogen
will be reporting second quarter earnings on Jul 25 before the
) has Earnings ESP of 14.29% and holds a Zacks Rank #3.
AMERISOURCEBRGN (ABC): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
FOREST LABS A (FRX): Free Stock Analysis
WALGREEN CO (WAG): Free Stock Analysis Report
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