AmerisourceBergen stock falls after lowered guidance

AmerisourceBergen
Source: AmerisourceBergen

Shares of AmerisourceBergen fell more than 7 percent Thursday after the company lowered its full-year earnings forecast.

The drug wholesale company slashed diluted earnings per share expectations by 10 cents to $5.44. Overall results were mixed; AmerisourceBergen beat analyst estimates by 9 cents a share, earning an adjusted $1.68 per share in the second quarter for this fiscal year. Quarterly revenue was just below forecasts at $35.7 billion, up 9.3 percent year-over-year.

The Pennsylvania-based company's stock is down more than 25 percent so far this year. Shares of AmerisourceBergen traded around $77 before the close Thursday, down from its 52-week high of $116 dollars.

CEO Steven Collis cited generic drug pricing pressure and slower-than-expected independent retail revenue among reasons for the change in forecast.

"We expect our gross profit in the second half of the year to be negatively impacted by certain accelerating headwinds, including an increase in the rate of generic deflation, and a lower contribution from new generic launches," Collis said, in a statement.

In addition, the company has extended a distribution contract with its largest pharmacy retail customer Walgreens Boots for an additional three years, Collis said.

Meanwhile, shares of competing drugmakers Mallinckrodt and Mylan rose after reporting better-than-expected quarterly earnings.