Stock Monitor: Cardinal Health Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 01, 2018 / Active-Investors.com has just released a free earnings report on AmerisourceBergen Corp. (NYSE: ABC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ABC. AmerisourceBergen reported its first quarter fiscal 2018 operating and financial results on February 06, 2018. The drug distributor outperformed top- and bottom-line expectations and provided guidance for the fiscal year 2018. 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
In the first quarter of fiscal 2018, AmerisourceBergen's revenue grew 6% to $40.47 billion compared to $38.17 billion in Q1 FY17. The Company's reported numbers beat analysts' estimates by $50 million.
During Q1 FY18, AmerisourceBergen's gross profit was $1.11 billion, up 7.2% compared to $1.04 billion in Q1 FY17. Gross profit as a percentage of revenue was 2.75% in the reported quarter, an increase of 3 basis points from the prior year's corresponding quarter. AmerisourceBergen's gross profit in Q1 FY18 was $1.1 billion, up 4.5% on a y-o-y basis, primarily due to the increase in gross profit in Pharmaceutical Distribution Services.
For Q1 FY18, AmerisourceBergen's operating expenses were $693.7 million compared to $637.7 million in Q1 FY17. The increase in operating expenses was primarily driven by operating additional distribution centers in the reported quarter and duplicate costs resulting from the implementation of new information technology systems as well as increased costs to support the Company's revenue growth.
During Q1 FY18, AmerisourceBergen's operating income was $419.0 million versus $400.0 million in Q1 FY17. The Company's adjusted operating income of $488.1 million inched up 0.4% on a y-o-y basis. AmerisourceBergen' operating income as a percentage of revenue decreased 6 basis points to 1.21% in Q1 FY18.
For Q1 FY18, AmerisourceBergen reported net income of $861.85 million, or $3.90 per diluted share, compared to $247.24 million, or $1.11 per diluted share, in Q1 FY17. The increase in net income was primarily driven by the benefit from US tax reform. On an adjusted basis, the Company's earnings were $1.55 per diluted share, up 14% on a y-o-y basis compared to $1.36 in the year earlier same quarter, driven primarily by a $0.15 benefit from US tax reform. The Company's earnings beat Wall Street's estimates of $1.35 per share.
AmerisourceBergen's Segment Results
During Q1 FY18, the Pharmaceutical Distribution Services segment's revenue grew 5.8% to $38.94 billion compared to $36.80 billion in Q1 FY17. In the reported quarter, the segment's operating income of $388.18 million grew 2.4% versus $379.06 million in the prior year's comparable quarter.
For Q1 FY18, AmerisourceBergen' revenue in Other segment totaled $1.54 billion compared to $1.38 billion in Q1 FY17, reflecting an increase of 11.6% on a y-o-y basis. Operating income in Other segment dropped 6.4% to $100.3 million on a y-oy- basis in the reported quarter, primarily driven by performance at ABCS, specifically the Lash Group, and MWI and was partially offset by the contribution from World Courier.
Outlook
For fiscal year 2018, AmerisourceBergen is forecasting revenue growth in the range of 8% to 11% and adjusted diluted earnings per share to be in the band of $6.45 to $6.65. The Company is estimating adjusted operating income growth in the range of 1% to 4%, Pharmaceutical Distribution Services segment's operating income growth to be in the band of 1% to 4%, and Other segment's operating income growth in the band of flat to 2%.
AmerisourceBergen is projecting FY18 adjusted free cash flow to be approximately $1.35 billion to $1.6 billion and capital expenditures of approximately $325 million.
Stock Performance Snapshot
February 28, 2018 - At Wednesday's closing bell, AmerisourceBergen's stock fell 2.54%, ending the trading session at $95.16.
Volume traded for the day: 1.43 million shares.
Stock performance in the last three-month - up 17.31%; previous six-month period - up 20.98%; past twelve-month period - up 3.99%; and year-to-date - up 3.64%
After yesterday's close, AmerisourceBergen's market cap was at $20.63 billion.
Price to Earnings (P/E) ratio was at 54.32.
The stock has a dividend yield of 1.60%.
The stock is part of the Services sector, categorized under the Drugs Wholesale industry.
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