Free Research Report as AmerisourceBergen’s Revenues Surged 10.5% and Adjusted EPS Scaled 9.6%

Stock Monitor: Cardinal Health Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 1, 2018 / If you want access to our free earnings report on AmerisourceBergen Corp. (NYSE: ABC), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ABC. The Company reported its financial results on May 02, 2018, for the second quarter of the fiscal year 2018 (Q2 FY18). The distributor of pharmaceutical products surpassed analysts’ estimates for revenue and earnings for Q2 FY18. In addition, the Company updated its full fiscal year 2018 financial guidance. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Cardinal Health, Inc. (NYSE: CAH), which also belongs to the Services sector as the Company AmerisourceBergen. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, AmerisourceBergen most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ABC

Earnings Highlights and Summary

During Q2 FY18, AmerisourceBergen’s revenues advanced 10.5% to $41.03 billion compared to $37.15 billion in Q2 FY17, primary led by a growth in its Pharmaceutical Distribution Services and Other segments. The Company’s revenue figures exceeded analysts’ estimates of $40.49 billion.

For the reported quarter, AmerisourceBergen incurred cost of goods sold of $39.78 billion compared to $35.89 billion, increasing 10.8% on a y-o-y basis. The Company’s gross profit was $1.26 billion in Q2 FY18, relatively flat compared to the year ago same period.

For Q2 FY18, AmerisourceBergen’s operating expenses increased 22.6% to $774.3 million versus $631.4 million in Q2 FY17, primarily due to the acquisition of H.D. Smith, duplicate costs from the implementation of new information technology systems, and operating additional distribution centers. The Company’s operating income declined 23% to $481.4 million in the reported quarter versus $625.0 million in the year ago comparable period. The Company posted an adjusted operating income of $586.3 million in the reported quarter, decreasing 0.4% on a y-o-y basis. The Company’s adjusted operating income as a percentage of revenues decreased 15 basis points to 1.43% in Q2 FY18.

AmerisourceBergen’s net income decreased to $287.5 million in Q2 FY18 compared to $411.5 million in Q2 FY17. The Company’s earnings per share (EPS) declined 30.6% to $1.29 in the reported quarter compared to $1.86 in the prior year’s corresponding period. On an adjusted basis, the Company’s EPS grew 9.6% to $1.94 in the reported quarter compared to $1.77 in Q2 FY17, surpassing analysts’ estimates of $1.83.

Segment Details

AmerisourceBergen operates through two reportable segments, namely (i) Pharmaceutical Distribution Services segment, and (ii) Other segment.

During the reported quarter, the Pharmaceutical Distribution Services segment’s revenues surged 10.4% to $39.5 billion compared to $35.8 billion in year ago same quarter, primarily due to the growth of some of its largest customers, overall market growth, and strong oncology product sales. During Q2 FY18, the segment’s operating income improved to $489.1 million compared to $484.9 million in Q2 FY17.

The Other segment’s revenues grew 12.6% to $1.6 billion in the reported quarter versus $1.4 billion in the year ago comparable period, primarily driven by the consolidation of the specialty joint venture in Brazil; a revenue growth from MWI; a growth in the Company’s Canadian operations and World Courier. The segment’s operating income decreased to $97.1 million in Q2 FY18 versus $103.6 million in Q2 FY17.

Cash Matters

As of March 31, 2018, AmerisourceBergen’s cash and cash equivalents stood at $2.09 billion compared to $2.40 billion as of March 31, 2017. During the reported quarter, the Company used cash for operating activities of $77.2 million compared to $368.4 million in the corresponding period of last year.

During the six months ended March 31, 2018, the Company bought back 0.7 million shares of its common stock for a total cost of $60.2 million.

Outlook

For the full fiscal year 2018, AmerisourceBergen expects revenue growth to be in the range of 8% to 11%, and adjusted diluted EPS to be in the band of $6.45 to $6.65. The Company anticipates adjusted operating expenses to grow in the range of 8% to 10% for FY18. The Company’s adjusted free cash flow is expected to be in the band of $1.35 billion – $1.60 billion.

Stock Performance Snapshot

May 31, 2018 – At Thursday’s closing bell, AmerisourceBergen’s stock fell 2.37%, ending the trading session at $82.14.

Volume traded for the day: 1.35 million shares.

After yesterday’s close, AmerisourceBergen’s market cap was at $17.76 billion.

Price to Earnings (P/E) ratio was at 69.32.

The stock has a dividend yield of 1.85%.

The stock is part of the Services sector, categorized under the Drugs Wholesale industry.

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