AmerisourceBergen First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component AmerisourceBergen (NYSE:ABC) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. AmerisourceBergen is a pharmaceutical services company providing drug distribution and related healthcare services to pharmacy, physician, and manufacturer customers based in North America.

AmerisourceBergen Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 67 cents per share, a rise of 8.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 69 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 68 cents during the last month. Analysts are projecting profit to rise by 10.2% compared to last year’s $3.12.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 69 cents per share against a mean estimate of profit of 68 cents, and the quarter before, the company exceeded forecasts by 3 cents with net income of 72 cents versus a mean estimate of profit of 69 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 11% to $163.5 million (67 cents a share) from $147.3 million (54 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 5.5% to $19.29 billion from $20.41 billion.

Wall St. Revenue Expectations: On average, analysts predict $21.69 billion in revenue this quarter, a rise of 6.5% from the year-ago quarter. Analysts are forecasting total revenue of $85.66 billion for the year, a rise of 7.8% from last year’s revenue of $79.49 billion.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Here’s how AmerisourceBergen traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Key Stats:

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the second quarter of the last fiscal year and third quarter of the last fiscal year, profit rose in the fourth quarter of the last fiscal year.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.9% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.98 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 1.02 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 2.4% to $11.21 billion while assets decreased 1.6% to $10.99 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)