AmerisourceBergen’s stock tumbles after PharMEDium woes, downbeat outlook outweighs earnings beat

AmerisourceBergen’s stock tumbles after PharMEDium woes, downbeat outlook outweighs earnings beat

Shares of AmerisourceBergen Corp. ABC, -9.19% tumbled 9.1% in morning trade Tuesday, after the drug company reported fiscal fourth-quarter earnings and revenue that just topped expectations but provided a downbeat profit outlook, citing a “potential sizable headwind” for its PharMEDium business. The company also disclosed in filing with the Securities and Exchange Commission that production at PharMEDium’s facilities remains suspended, while Leerink analyst David Larsen said commercial operations were previously expected to begin in September, as the company waited for feedback from the Food and Drug Administration. Earlier Tuesday, the company reported third-quarter net income of $233.3 million, or $1.07 a share, compared with a loss of $344.6 million, or $1.58 a share, in the same period a year ago. Adjusted earnings per share came to $1.45, above the FactSet consensus of $1.44, but the fiscal 2019 adjusted EPS outlook of $6.65 to $6.95 was below expectations of $7.11. The stock has lost 2.0% over the past three months, while the SPDR Health Care Select Sector ETF XLV, +0.14% has gained 0.3% and the S&P 500 SPX, +0.25% has lost 3.6%.

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