Earnings Preview For AmerisourceBergen Corporation (ABC)

AmerisourceBergen Corporation ABC is expected to publish its earnings results on Thursday, April 28, before the markets open. Analysts are expecting earnings per share to be $0.69, up 9.5% on the previous year's value of $0.63. AmerisourceBergen Corporation is a Pennsylvania-based pharmaceutical services company, with operations primarily in the United States and Canada. Servicing both healthcare providers and pharmaceutical manufacturers in the pharmaceutical supply channel, the company provides drug distribution and related services. It distributes an offering of brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a variety of healthcare providers primarily located in the United States and Canada, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical and dialysis clinics, physicians and physician group practices, long-term care and other alternate site pharmacies, and other customers. The company also provides pharmacy services to certain specialty drug patients. It is one of the Fortune 500 companies. In the beginning of April, Raymond James' analysts downgraded AmerisourceBergen's rating from a Buy to Outperform. The majority of rating agencies still hold a Buy or Strong Buy rating on its shares, however. Analysts predict AmerisourceBergen's revenues will reach $15.95 billion this quarter, up 3.4% from a year ago. For 2011, the expected revenue growth rate is 2.9%. Earnings per share should grow at a faster pace, however. Analysts are projecting this year's earnings per share will be 11.1% higher year-on-year, but still below the industry average of 20.4%. AmerisourceBergen's history of beating market expectations will probably provide some optimism to investors, however. Last year, the company's results were higher than market expectations in all four quarters, outperforming expectations by as much as 14.5%.