AmerisourceBergen Fourth Quarter Profit Rises 13%, Beating View (ABC)
November 3rd, 2009

Drug distributor AmerisourceBergen Corp. (ABC



) on Tuesday posted fiscal fourth quarter earnings that rose 13% from last year, beating analyst estimates and sending its shares higher.
The Chesterbrook, Pennsylvania-based company reported fiscal fourth quarter net income of $130.1 million, or 44 cents per share, compared with $114.9 million, or 36 cents per share, in the year-ago period.
Revenue rose 9% from last year, to $18.72 billion.
On average, Wall Street analysts expected a lower profit of 40 cents per share, on smaller revenue of $18.06 billion.
As for the full year, the company said it earned $503.4 million, or $1.66 per share, up from $250.6 million, or 77 cents per share, in fiscal 2008. Revenue rose 2% from last year, to $71.76 billion.
Looking ahead, it forecast fiscal 2010 profits to range from $1.82 to $1.92 per share, on implied revenue of $75.35 billion to $77.13 billion. Analysts currently expect $1.84 per share on $73.94 billion in revenue.
AmerisourceBergen shares rose $1.09, or +4.8%, in morning trading Tuesday.
The Bottom Line
We have avoided shares of ABC since our early June coverage began last year, when the stock was trading at a split-adjusted $20.56. The company has a 1.07% dividend yield, based on last night’s closing stock price of $22.51. The stock has technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $24 price area. We would remain on the sidelines for now.
AmerisourceBergen Corp. (ABC



) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.



Stock Screener
RSS

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the