Pharmaceutical services company AmerisourceBergen Corp. (ABC) announced Wednesday that it will reaffirm its prior forecast for the full-year 2012 at its investor day meeting in New York City later in the day. The company expects earnings for fiscal 2012 to grow 8 percent to 12 percent from last year, on an assumed annual revenue growth of between flat and modest.
The Valley Forge, Pennsylvania-based company will reaffirm its earnings forecast for fiscal 2012 in a range of $2.74 to $2.84 per share, representing an 8 percent to 12 percent increase from last year's earnings of $2.54 per share.
On average, 13 analysts polled by Thomson Reuters currently expect the company to report earnings of between $2.78 and $2.85 per share for the full-year 2012, with a consensus of $2.81 per share. Analysts' estimates typically exclude special items.
The company also anticipates full-year 2012 revenue to grow between flat and modestly from the annual revenues of $80.22 billion reported for fiscal 2011.
Sixteen Wall Street analysts currently have a consensus revenue estimate of $80.84 billion for the full-year 2012, with estimates ranging between $79.46 billion and $82.63 billion.
The company's key assumptions for fiscal 2012 earnings forecast continue to be revenue growth of flat to modestly, with operating margin growth expected in the high single-digit to low double-digit basis points range.
The company noted that free cash flow is still assumed to be in the range of $700 million to $800 million, including capital expenditures in the $150 million range. The company also plans to repurchase about $400 million of its common shares in the fiscal year 2012.
In early November, AmerisourceBergen reported a 4.3 percent year-over-year increase in profit for the fourth quarter, driven by strong generic drug sales and solid performance under fee-for-service contracts with manufacturers. Net income grew to $147.32 million or $0.54 per share from $141.23 million or $0.50 per share in the year-ago quarter. Quarterly revenues rose 3.5 percent to $20.41 billion from $19.72 billion last year, reflecting a 6 percent increase in AmerisourceBergen Drug Corp. revenue.
Later in November, the company boosted its quarterly dividend rate by 13 percent to $0.13 per share, paid on December 5 to stockholders of record at the close of business on November 21, 2011.
In Wednesday's regular trading session, ABC is currently trading at $35.76, down $0.10 or 0.28 percent on a volume of 76,854 shares.
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