AmerisourceBergen Corporation (ABC) has reported 59.88 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $145.68 million, or $0.64 a share in the quarter, compared with $363.12 million, or $1.56 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $297.24 million, or $1.30 a share compared with $267.83 million or $1.16 a share, a year ago.
Revenue during the quarter grew 5.89 percent to $37,560.60 million from $35,470.38 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 2.99 percent. Total expenses were 99.40 percent of quarterly revenues, up from 98.48 percent for the same period last year. That has resulted in a contraction of 92 basis points in operating margin to 0.60 percent.
Operating income for the quarter was $224.80 million, compared with $538.48 million in the previous year period.
However, the adjusted operating income for the quarter stood at $464.19 million compared to $456.99 million in the prior year period. At the same time, adjusted operating margin contracted 5 basis points in the quarter to 1.24 percent from 1.29 percent in the last year period.
"I am pleased with the solid performance we delivered in the September quarter," said Steven H. Collis, chairman, resident and chief executive officer of AmerisourceBergen. "We successfully navigated a challenging healthcare landscape, and we continued to enhance our offerings for customers and make important investments in our infrastructure."
For financial year 2017, Amerisourcebergen Corp expects revenue to grow in the range of 6.50 percent to 8 percent. The company projects diluted earnings per share to be in the range of $5.63 to $5.88 on adjusted basis.
Operating cash flow declines
AmerisourceBergen Corporation has generated cash of $3,178.50 million from operating activities during the year, down 18.96 percent or $743.73 million, when compared with the last year.
The company has spent $3,169.18 million cash to meet investing activities during the year as against cash outgo of $2,931.16 million in the last year.
Cash flow from financing activities was $565.07 million for the year as against cash outgo of $632.13 million in the last year period.
Cash and cash equivalents stood at $2,741.83 million as on Sep. 30, 2016, up 26.50 percent or $574.39 million from $2,167.44 million on Sep. 30, 2015.
Debt moves up marginally
AmerisourceBergen Corporation has witnessed an increase in total debt over the last one year. It stood at $3,594.25 million as on Sep. 30, 2016, up 2.90 percent or $101.21 million from $3,493.05 million on Sep. 30, 2015. Amerisourcebergen Corp has witnessed an increase in long-term debt over the last one year. It stood at $3,594.25 million as on Sep. 30, 2016, up 2.90 percent or $101.21 million from $3,493.05 million on Sep. 30, 2015. Total debt was 10.70 percent of total assets as on Sep. 30, 2016, compared with 12.59 percent on Sep. 30, 2015. Debt to equity ratio was at 1.69 as on Sep. 30, 2016, down from 5.51 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 6.41 for the quarter from 16.94 for the same period last year.
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