Markets

AmerisourceBergen (ABC) Q1 Earnings Beat, Revenues Lag

AmerisourceBergen CorporationABC 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 , Cardiovascular Systems CSII and Neogen Corp. NEOG . 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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

OraSure Technologies, Inc. (OSUR): Free Stock Analysis Report

Neogen Corporation (NEOG): Free Stock Analysis Report

Cardiovascular Systems, Inc. (CSII): Free Stock Analysis Report

AmerisourceBergen Corporation (Holding Co) (ABC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

NEOG CSII ABC OSUR

Other Topics

Earnings Stocks