AmerisourceBergen (ABC) continued with its strong performance in fiscal 2010 with second quarter earnings beating the Zacks Consensus Estimate by 8 cents. Earnings increased 34% from the year-ago period. Performance was driven by strong revenues, successful generic drug launches, and continued expense management.
Total revenues for the quarter increased 11.5%. The company is well positioned for growth given the strong performance of its generics and specialty pharma business. Going forward, the company should continue to benefit from growth in the pharmaceutical industry, which is driven by factors like an aging population, increased use of generics and introduction of new treatments.
Based on the strong second quarter results and improving outlook for fiscal 2010, we are upgrading the stock to Outperform with a price target of $38.Zacks Investment Research
