Pharmaceutical services company AmerisourceBergen Corp. (ABC) reported Thursday a sharp decline in second-quarter profit, due to hefty loss from discontinued operations. Revenues increased from last year. Further, the company backed its fiscal 2013 earnings forecast, which is now expected in the lower half of the range.
In pre-market activity, AmerisourceBergen shares are currently trading at $54, down $1.82 or 3.26 percent.
The company's second-quarter net income plunged to $45.63 million or $0.19 per share from last year's $212.11 million or $0.81 per share. The latest results included loss from discontinued operations of $0.68 per share as a result of the pending sale of AmerisourceBergen Canada Corp., compared to last year's loss of $0.03 per share.
On a continuing operations basis, income declined 6.8 percent to $204.14 million, while earnings per share improved 3.6 percent to $0.87 from $0.84 last year, driven by the 10.6 percent reduction in share count.
On average, 15 analysts polled by Thomson Reuters expected earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue in the quarter was $20.52 billion, 4.1 percent higher than last year's $19.71 billion. Analysts expected revenues of $21.33 billion.
The revenue growth reflected higher results at AmerisourceBergen Drug Corp., AmerisourceBergen Specialty Groupe, and a 46.9 percent increase in manufacturer services businesses.
Looking ahead, the company reaffirmed its expectations for fiscal year 2013 adjusted earnings per share from continuing operations in the range of $3.04 to $3.14, though likely in the lower half of the range. Analysts expect $3.07 per share.
Excluding certain items, the company now expect revenue growth in the 11 percent to 13 percent range, operating income decline in the 3 percent to 5 percent range, and an operating margin decline in the range of 24 to 29 basis points.
Subject to market conditions, the company continues to expect to spend approximately $400 million to repurchase common shares in fiscal year 2013.
AmerisourceBergen also said that it will retroactively adjust its financial results for fiscal year 2012 due to the pending sale of AmerisourceBergen Canada and the classifying of its operating results as discontinued operations.
Total consolidated revenues in fiscal 2012 will be adjusted to $78.1 billion, consolidated operating income will be adjusted to $1.3 billion, and earnings per share from continuing operations will be adjusted to $2.96.
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