AmerisourceBergen fiscal 1Q profit sinks 75 pct

AmerisourceBergen fiscal 1st quarter profit sinks but revenue soars, results beat expectations

Associated Press

VALLEY FORGE, Pa. (AP) -- AmerisourceBergen Corp.'s fiscal first-quarter earnings sank 75 percent, hurt by costs tied to a supply agreement with the drugstore chain Walgreen.

But that deal also helped the prescription drug distributor's revenue soar, and its results released Thursday topped expectations. AmerisourceBergen lifted its revenue outlook for the year. It kept its earnings outlook.

Shares rose $2.52, or 3.6 percent, to $72.80 in premarket trading Thursday.

The Valley Forge, Pa., company recorded a $116.3 million charge for warrants in the quarter that ended Dec. 31. It entered into a 10-year supply agreement with Walgreen last year and, as part of that deal, the nation's largest drugstore chain and European health and beauty retailer Alliance Boots received warrants to purchase AmerisourceBergen shares. .

Overall, the company earned $41.4 million, or 17 cents per share, in the quarter. That compares with $168.6 million, or 71 cents per share, in the same months in 2012. Adjusted earnings totaled 80 cents per share, while revenue rose 39 percent to $29.18 billion.

Analysts expected, on average, earnings of 78 cents per share on $27.5 billion in revenue, according to FactSet.

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