AmerisourceBergen Earnings Cheat Sheet: Margins Rise with Revenues, Net Income Rises

S&P 500 (NYSE:SPY) component AmerisourceBergen Corporation (NYSE:ABC) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for the drug wholesaler rose to $184.4 million (66 cents per share) vs. $163.2 million (57 cents per share) in the same quarter a year earlier. This marks a rise of 13% from the year earlier quarter.

Revenue: Rose 2.9% to $20.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ABC beat the mean analyst estimate of 59 cents per share. Analysts were expecting revenue of $20.17 billion.

Quoting Management: “In our June quarter, AmerisourceBergen once again delivered outstanding performance on top of a 36 percent increase in diluted earnings per share in the same quarter last year,” said Steven H. Collis, AmerisourceBergen President and Chief Executive Officer. “We had solid results in all of our business units. That performance, combined with better than expected contributions from specialty generics, drove results ahead of expectations in the quarter. In addition, our disciplined approach to working capital management has further strengthened our balance sheet, and we continue to have tremendous financial flexibility. Our results for the quarter and year-to-date continue to demonstrate the value of our two powerful growth drivers – generics and specialty pharmaceuticals.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 18.4% and in the first quarter, the figure rose 6.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 4 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 2.4% to $19.76 billion in the second quarter. The figure rose 2.9% in the first quarter from the year earlier and climbed 5.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

Gross margins grew 0.2 percentage point to 3.2%. The growth seemed to be driven by increased revenue, as the figure rose 2.9% from the year earlier quarter while costs rose 2.6%.

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), and MWI Veterinary Supply, Inc. (NASDAQ:MWIV).

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(Source: Xignite Financials)