AmerisourceBergen 4Q Profit Up 13%, Give Strong View
DOW JONES NEWSWIRES
AmerisourceBergen Corp.'s (ABC) fiscal fourth-quarter earnings rose 13% as the
drug wholesaler reported what President and Chief Executive R. David Yost said
was above-market sales growth in generic drugs.
He also cited an "excellent" performance by the company's higher-margin
specialty distribution and services operation.
The company faces more pressure as drug makers consolidate operations,
limiting AmerisourceBergen's leverage in packaging and distribution
negotiations. Still, the company on Tuesday projected earnings will grow in the
new fiscal year to $1.82 to $1.92 a share with revenue rising 5% to 7%. Analysts
polled by Thomson Reuters are expecting, on average, a profit of $1.84 and
revenue growth of 4% to $73.94 billion.
For the quarter ended Sept. 30, the pharmaceutical-services company posted a
profit of $130.1 million, or 44 cents a share, up from $114.9 million, or 36
cents, a year earlier. In July, the company said it expected fourth-quarter
earnings from continuing operations at the higher end of a range of 34 cents to
40 cents.
Revenue increased 9.1% to $18.72 billion. Analysts surveyed by Thomson Reuters
most recently projected $18.06 billion.
Gross margin fell to 2.9% from 3.1% as the prior year benefited from a
contract-dispute settlement and a "significant" price increase from a supplier.
Shares closed Monday at $22.51 and were inactive premarket. The stock is up
44% the past year.
-By Jenny Park and Kevin Kingsbury; Dow Jones Newswires; 212-416-2275;
jenny.park@dowjones.com
(END) Dow Jones Newswires
11-03-090737ET
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