Stock To Observe: AmerisourceBergen Corporation (NYSE: ABC)

On Thursday, AmerisourceBergen Corporation (NYSE: ABC) shares price traded between $86.19 and $87.99 during the last trading session below with -0.39% at $86.80. The shares recorded trading volume 1,482,147 shares as compared to its average volume of 1,449,555 shares. The stock price is going above to its 52 week low with 20.72% and lagging behind from its 52 week high with -18.32%.

AmerisourceBergen Corporation (ABC) recently stated that in its fiscal year 2018 2nd quarter ended March 31, 2018, revenue raised 10.5 percent to $41.0B. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $1.29 for the March quarter of fiscal 2018, contrast to $1.86 in the previous year quarter. Adjusted diluted EPS, which is a non-GAAP measure that excludes items described below, raised 9.6 percent to $1.94 in the fiscal 2nd quarter.

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2nd Quarter GAAP Results

  • Revenue:In the 2nd quarter of fiscal 2018, revenue was $41.0B, up 10.5 percent contrast to the same quarter in the previous fiscal year, reflecting a 104 percent raise in Pharmaceutical Distribution Services revenue and a 12.6 percent raise in revenue within Other.
  • Gross Profit:Gross profit in the fiscal 2018 2nd quarter was $1.3B, relatively flat contrast to the same period in the previous fiscal year, Because of the negative impact of PharMEDium’s lower revenues and its facility remediation costs in the current year quarter and a LIFO credit that benefited the previous year period. There was no LIFO expense or credit in the fiscal 2018 second quarter. Gross profit as a percentage of revenue was 3.06 percent, a decrease of 32 basis points from the previous year quarter.
  • Operating Expenses:In the second quarter of fiscal 2018, operating expenses were $774.3M, contrast to $631.4M in the same period last fiscal year. The rise in operating expenses was primarily driven by the acquisition of H. D. Smith, consolidation of Profarma and the specialty joint venture in Brazil, operating additional distribution centers in the current year quarter and duplicate costs resulting from the implementation of new information technology systems, as well as raised costs to support our revenue growth.
  • Operating Income:In the fiscal 2018 2nd quarter, operating income was $481.4M versus $625.0M in the previous year period.
  • Other Loss (Income):In the fiscal 2018 2nd quarter, other loss included a $30.0M impairment on a non-consumer note receivable related to a start-up venture.
  • Interest Expense, Net:In the fiscal 2018 2nd quarter, net interest expense of $48.6M was up 30.4 percent versus the previous year quarter, primarily Because of the new debt issued to finance the H. D. Smith acquisition.
  • Loss on Consolidation of Equity Investments:In the fiscal 2018 2nd quarter, a loss of $42.3M was incurred primarily relating to the recognition of unrealized foreign currency translation losses in connection with the re-measurement of equity interests in Profarma and the specialty joint venture in Brazil.
  • Tax Rate:The effective tax rate of 21.9 percent for the second quarter of fiscal 2018 primarily reflects the reduction in the U.S. federal income tax rate from 35% to 21% and the benefit from stock option exercises.
  • Diluted Earnings per Share:A diluted earnings per share was $1.29 in the second quarter of fiscal 2018 contrast to $1.86 in the previous fiscal year’s 2nd
  • Diluted Shares Outstanding:Diluted weighted average shares outstanding for the second quarter of fiscal 2018 were 222.3M, a 0.5 percent raise versus the previous fiscal year second quarter, due primarily to stock option exercises, net of share repurchases.

2nd Quarter Adjusted (Non-GAAP) Results

  • Revenue:In the second quarter of fiscal 2018, revenue was $41.0B, up 10.5 percent contrast to the same quarter in the previous fiscal year, reflecting a 10.4 percent raise in Pharmaceutical Distribution Services revenue and a 12.6 percent raise in revenue within Other.
  • Adjusted Gross Profit:Gross profit in the fiscal 2018 2nd quarter was $1.3B, which was up 9.2 percent when contrast to the same period in the previous year, primarily Because of the raise in gross profit in Pharmaceutical Distribution Services, which includes the acquisition of H. D. Smith and the consolidation of Profarma. Gross profit as a percentage of revenue was 3.11 percent, a decrease of 4 basis points from the previous year quarter.
  • Adjusted Operating Expenses:In the 2nd quarter of fiscal 2018, operating expenses were $691.5M, and raise of 18.9% contrast to the same period in the last fiscal year. Operating expenses as a percentage of revenue in the fiscal 2018 2nd quarter were 1.69 percent, contrast to 1.57 percent for the same period in the previous fiscal year. The rise in operating expenses was driven by the acquisition of H. D. Smith, consolidation of Profarma and the specialty joint venture in Brazil, operating additional distribution centers in the current year quarter and duplicate costs resulting from the implementation of new information technology systems, as well as raised costs to support our revenue growth.
  • Adjusted Operating Income:In the fiscal 2018 2nd quarter, operating income of $586.3M reduced 0.4 percent from the previous year period. Operating income as a percentage of revenue reduced 15 basis points to 1.43 percent in the fiscal 2018 2nd quarter contrast to the previous fiscal year’s 2nd
  • Adjusted Interest Expense, Net:In the fiscal 2018 second quarter, net interest expense of $48.6M was up 38.4 percent versus the previous year quarter, primarily Because of the new debt issued to finance the H. D. Smith acquisition.
  • Adjusted Tax Rate:The effective tax rate for the second quarter of fiscal 2018 was 20.7 percent, down from 30.1 percent in the previous fiscal year’s second quarter, primarily driven by a reduction in the U.S. federal income tax rate from 35% to 21%.
  • Adjusted Diluted Earnings Per Share:Diluted earnings per share was up 9.6 percent to $1.94 in the second quarter of fiscal 2018 contrast to $1.77 in the previous fiscal year’s second quarter, driven by the benefit from U.S. tax reform.
  • Diluted Shares Outstanding:Diluted weighted average shares outstanding for the second quarter of fiscal 2018 were 222.3M, a 0.5 percent raise versus the previous fiscal year second quarter due primarily to stock option exercises, net of share repurchases.

(ABC) is recorded at 2.19 and the relative strength index of the stock stands 43.87. The company has price-to-cash ratio of 8.99 and price to sale ratio of 0.12. The company net profit margin is 0.50% and gross profit margin is 2.90%.

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