AmerisourceBergen (NYSE: ABC) reported Q1 EPS of $1.27, $0.02 better than the analyst estimate of $1.25. Revenue for the quarter came in at $36.7 billion versus the consensus estimate of $36.86 billion.

GUIDANCE:

AmerisourceBergen sees FY2016 EPS of $5.73-$5.83, versus the consensus of $5.83.

“This morning, we announced that we signed a distribution agreement with a new customer, Publix, the impact of which was included in our previously disclosed fiscal 2016 expectations. In January 2016, we signed an early renewal and long-term contract extension with our largest independent pharmacy group purchasing organization customer, Compliant Pharmacy Alliance Cooperative,” said Mr. Collis. “While this strategic renewal was not contemplated in our prior expectations, it strengthens our position in a key customer segment for many years to come.”

“Looking ahead, the decline in generic inflation, the early contract renewal, and a reduction in our expectations regarding the contribution from generic launches over the course of the year will make it difficult for us to achieve the high end of our original adjusted earnings per share range for fiscal 2016. Therefore, we now expect our adjusted diluted earnings per share to be in the range of $5.73 to $5.83 for fiscal 2016.”

Other assumptions for financial performance in fiscal 2016 now include:

• Revenue growth in the range of 8 percent to 10 percent;
• Adjusted operating margin increase of 3 to 5 basis points;
• Effective tax rate of about 33.5 percent;
• Free cash flow generation in the range of $2.3 billion to $2.7 billion;
• Capital expenditures in the $400 million range;
• Modest share repurchases under the regular and special programs, as well as special share repurchases to satisfy previously disclosed hedging programs, all subject to market conditions.

For earnings history and earnings-related data on AmerisourceBergen (ABC) click here.