Yahoo Finance AmerisourceBergen (ABC) to Post Q1 Earnings: What's in Store?
AmerisourceBergen Corporation ABC is scheduled to release first-quarter fiscal 2023 results on Feb 1, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 1.95%. Its earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 2.63%.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter fiscal 2023 revenues is pegged at $62.27 billion, indicating an improvement of 4.4% from the prior-year quarter. The consensus mark for earnings stands at $2.62 per share, suggesting growth of 1.6% from the year-ago reported figure.
Factors to Note
Sustained growth in specialty product sales, coupled with overall market growth at the U.S. Healthcare Solutions segment, may have favored the fiscal first-quarter performance. The commercial COVID-19 treatments recorded lower sales in the past two quarters, a trend that is likely to have continued in the soon-to-be-reported quarter. With respect to the U.S. Healthcare Solutions segment, revenues are expected to grow 6-8% in fiscal 2023. Consequently, this may get reflected in the fiscal first-quarter results. Our model suggests first-quarter revenues for this segment to be $55.8 billion.
In fiscal 2023, operating income at this segment is anticipated to grow by 2-4%. This, in turn, is likely to get reflected in the fiscal first-quarter results. Our model predicts the segment’s adjusted operating income to be $629.4 million for the first quarter.
Apart from this, the International Healthcare Solutions segment’s World Courier unit is likely to have exhibited solid performance in the fiscal first quarter. In fact, World Courier’s impressive track record as an international leader in specialty logistics has enabled AmerisourceBergen to lend support to customers globally despite a challenging COVID-induced environment and additional operational challenges. Moreover, Alliance Healthcare’s products are likely to have driven the top line in the first quarter. Our model suggests first-quarter revenues for this segment to be $6.5 billion.
Per the fiscal 2023 guidance, operating income at the International Healthcare Solutions segment is estimated to decline by 3-7%. This, in turn, is likely to get reflected in the fiscal first-quarter results. Our model predicts the segment’s adjusted operating income to be $94.3 million for the first quarter.
AmerisourceBergen Corporation Price and Consensus
AmerisourceBergen Corporation price-consensus-chart | AmerisourceBergen Corporation Quote
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: AmerisourceBergen has an Earnings ESP of -1.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
McKesson MCK has an Earnings ESP of +0.21% and is a Zacks #2 holder. MCK has an earnings yield of 6.6%, which compares favorably with the industry’s yield of 4.5%.
McKesson’s earnings surpassed estimates in two of the trailing four quarters and missed twice, with the average surprise being 4.79%.
Cardinal Health CAH has an Earnings ESP of +5.75% and a Zacks Rank of 2. CAH has an estimated long-term growth rate of 11.7%.
Cardinal Health’s earnings surpassed estimates in two of the trailing four quarters and missed twice, with the average surprise being 3.04%.
Laboratory Corp. of America LH has an Earnings ESP of +2.67% and a Zacks Rank of 2 at present. LH has an earnings yield of 7%, which compares favorably with the industry’s yield of 4.5%.
Laboratory Corp. of America‘s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 6.06%.
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Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
McKesson Corporation (MCK) : Free Stock Analysis Report
