Chesterbrook, PA-based AmerisourceBergen Corporation (NYSE:ABC) is one of the world’s largest pharmaceutical services companies, which focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. AmerisourceBergen serves healthcare providers and pharmaceutical manufacturers in the pharmaceutical supply channel.
AmerisourceBergen entered into a strategic agreement with Walgreen Boots Alliance in fiscal 2013. The agreement included a 10-year pharmaceutical distribution contract with Walgreen and access to generic drugs and related pharmaceutical products through the Walgreen Boots Alliance Development joint venture. The company also acquired leading animal health distribution company, MWI Veterinary Supply, Inc. to further diversify its portfolio.
AmerisourceBergen’s track record has been mixed with the company comfortably beating estimates in three of the last four quarters with an average positive surprise of 7%. Estimates for fiscal 2016 have been more or less static in the last 30 days.
Currently, AmerisourceBergen has a Zacks Rank #4 (Sell) but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: AmerisourceBergen topped earnings in the second quarter of fiscal 2016. Our consensus called for EPS of $1.62, and the company reported EPS of $1.68.
Revenue: AmerisourceBergen posted revenues of $35.7 billion in the reported quarter, roughly in line with our consensus estimate.
Key Stats: The company announced that it has extended the term of its strategic agreement with Walgreens Boots Alliance (NASDAQ:WBA) for an additional three years. However, AmerisourceBergen slashed its guidance for fiscal 2016 and now expects earnings per share in the range of $5.44 to $5.54, down from the earlier estimate of $5.73 to $5.83.
Check back later for our full write up on this AmerisourceBergen earnings report later!
AMERISOURCEBRGN (ABC): Free Stock Analysis Report
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