AmerisourceBergen Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component AmerisourceBergen (NYSE:ABC) will unveil its latest earnings on Thursday, July 26, 2012. 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 69 cents per share, a rise of 13.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 71 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 69 cents during the last month. For the year, analysts are projecting net income of $2.81 per share, a rise of 10.2% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported profit of 81 cents per share versus a mean estimate of net income of 81 cents per share. In the first quarter, the company beat estimates by one cent.

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Stock Price Performance: Between May 23, 2012 and July 20, 2012, the stock price had risen $2.90 (8%), from $36.31 to $39.21. The stock price saw one of its best stretches over the last year between May 18, 2012 and May 25, 2012, when shares rose for six straight days, increasing 2.5% (+91 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 8.6% (-$3.37) over that span.

Analyst Ratings: With eight 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.

A Look Back: In the second quarter, profit fell 1.1% to $212.1 million (81 cents a share) from $214.4 million (77 cents a share) the year earlier, meeting analyst expectations. Revenue rose 1.6% to $20.07 billion from $19.76 billion.

Key Stats:

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 13% in the third quarter of the last fiscal year, 4.3% in the fourth quarter of the last fiscal year and 1% in the first quarter before declining in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 2.9% in the third quarter of the last fiscal year, 3.5% in the fourth quarter of the last fiscal year and 2.4% in the first quarter before increasing again in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $20.36 billion in revenue this quarter, a rise of 1% from the year-ago quarter. Analysts are forecasting total revenue of $81.14 billion for the year, a rise of 1.1% from last year’s revenue of $80.22 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.06 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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