8-KEarnings & ResultsOther EventsExhibits & Filings

Cencora, Inc. 8-K Report, Financial Results (Apr 22, 2010)

Filed April 22, 2010For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on April 22, 2010, reporting its financial results for the fiscal quarter ended March 31, 2010, and notably, an upward revision to its fiscal year 2010 guidance. The company raised its diluted earnings per share (EPS) forecast to a range of $2.01 to $2.10. This positive outlook is underpinned by maintained revenue growth expectations of 7% to 8%, despite anticipating a slight moderation in market growth in the latter half of the fiscal year. Investors should also note the company's increased confidence in operating margin expansion, projected to be in the high single to low double-digit basis point range. Furthermore, Cencora increased its free cash flow guidance to between $525 million and $600 million, with planned capital expenditures around $140 million. The company also reaffirmed its intention to repurchase approximately $350 million of its common shares during fiscal year 2010, signaling a commitment to returning value to shareholders.

Key Highlights

  • 1Cencora (formerly AmerisourceBergen) raised its full-year fiscal 2010 diluted EPS guidance to $2.01-$2.10.
  • 2Revenue growth expectations for fiscal year 2010 remain strong at 7%-8%.
  • 3Operating margin expansion is now projected to be in the high single to low double-digit basis point range.
  • 4Free cash flow guidance for fiscal year 2010 was increased to $525 million - $600 million.
  • 5Capital expenditures are planned to be around $140 million for the fiscal year.
  • 6The company expects to repurchase approximately $350 million of its common shares in fiscal year 2010.

Frequently Asked Questions

The company raised its full-year fiscal 2010 diluted EPS guidance, indicating stronger-than-expected performance and profitability. This was accompanied by maintained revenue growth expectations and improved outlooks for operating margin expansion and free cash flow.

Cencora updated its diluted earnings per share (EPS) guidance to a range of $2.01 to $2.10. The company maintained its expectation for revenue growth between 7 percent and 8 percent for the fiscal year.

Cencora increased its free cash flow guidance to $525 million to $600 million for fiscal year 2010, with planned capital expenditures of around $140 million. The company also intends to repurchase approximately $350 million of its common shares, suggesting a focus on returning capital to shareholders.

While revenue growth expectations remain unchanged, the company anticipates market growth to be between 3 percent and 5 percent in the second half of the fiscal year. This reflects the company annualizing most of its new business wins.