ABC Earnings Cheat Sheet: Delivering Smooth Performance

S&P 500 (NYSE:SPY) component AmerisourceBergen Corporation (NYSE:ABC) reported net income above Wall Street’s expectations for the second quarter. AmerisourceBergen Corporation is a pharmaceutical services company providing drug distribution and related healthcare services to pharmacy, physician, and manufacturer customers based in North America.

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AmerisourceBergen Earnings Cheat Sheet for the Second Quarter

Results: Net income for the drug wholesaler rose to $214.4 million (77 cents/share) vs. $181 million (63 cents/share) in the same quarter a year earlier. A rise of 18.4% from the year earlier quarter.

Revenue: Rose 2.4% to $19.76 billion YoY.

Actual vs. Wall St. Expectations: ABC beat the mean analyst estimate of 69 cents/share. Estimates ranged from 66 cents per share to 75 cents per share.

Quoting Management: “In the March quarter, we delivered outstanding performance on top of very strong performance last year,” said R. David Yost, AmerisourceBergen Chief Executive Officer. “During the quarter, we announced that I will retire from the Company on July 1, 2011, my 64th birthday, and that Steve Collis, currently President and Chief Operating Officer, will succeed me as CEO on that date. The transition is progressing smoothly, and I have the utmost confidence that with Steve’s leadership, AmerisourceBergen will take full advantage of the opportunities that lie ahead.”

Key Stats:

The company has now seen net income rise in three-straight quarters. In the first quarter, net income rose 6.1% and in the fourth quarter of the last fiscal year, the figure rose 8.5%.

Gross margins grew 0.3 percentage point to 3.5%. The growth seemed to be driven by increased revenue, as the figure rose 2.4% from the year earlier quarter while costs rose 2.1%.

Over the last five quarters, revenue has increased 6.2% on average year over year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 14% from the year earlier quarter.

Competitors to Watch: McKesson Corporation (NYSE:MCK), Cardinal Health, Inc. (NYSE:CAH), Henry Schein, Inc. (NASDAQ:HSIC), Omnicare, Inc. (NYSE:OCR), BioScrip Inc. (NASDAQ:BIOS), Grupo Casa Saba, S.A. (NYSE:SAB), Owens & Minor, Inc. (NYSE:OMI), Patterson Companies, Inc. (NASDAQ:PDCO), PSS World Medical, Inc. (NASDAQ:PSSI), Pfizer (NYSE:PFE), Merck (NYSE:MRK), and MWI Veterinary Supply, Inc. (NASDAQ:MWIV).

Today’s Performance: Shares of ABC are trading at $40.99 as of April 28, 2011 at 4:00 PM ET, down 2.47% from the previous close.

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