What's In Store For AmerisourceBergen (ABC) In Q2 Earnings?
Zacks Investment Research | Apr 23, 2018 09:22PM ET
AmerisourceBergen Corporation’s (NYSE:ABC) second-quarter fiscal 2018 results, scheduled for release on May 2, are expected to show steady growth in the Pharmaceutical Distribution segment, a significant contributor to revenues.
In the last reported quarter, the company posted adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.35 and improving 14% year over year. The upside was attributed to strong growth in the company’s Pharmaceutical Distribution Segment and World Courier business. Revenues improved almost 6% to $40.47 billion in the previous quarter and beat the Zacks Consensus Estimate of $40.37 billion.
For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $40.49 billion, reflecting a rise of 9% year over year. The Zacks Consensus Estimate for earnings is pegged at $1.83, indicating an increase of 3.4% year over year.
Let’s dig deeper to analyze how things are shaping up before the earnings announcements.
Pharmaceutical Distribution to Boost Q2 Results
Pharmaceutical Distribution accounted for 96.2% of total revenues in the last quarter. Revenues in the segment were $38.94 billion, up 5.8% on a year-over-year basis. Operating income was $388.2 million, up 2.4% year over year.
For the upcoming quarterly results, the Zacks Consensus Estimate for Pharmaceutical Distribution segment is pegged at $38.88 billion. The figure reflects an increase of 9.5% from the year-ago figure.
Strong organic growth rates in the U.S. pharmaceutical market, improving patient access to medical care, improved economic conditions and population demographics, introduction of new innovative drugs like hepatitis C drugs along with a consistent good brand-pricing environment should drive growth for AmerisourceBergen in the quarter to be reported.
AmerisourceBergen Corporation Price and EPS Surprise
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