Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on November 1, 2012, primarily to report its fiscal year and fourth-quarter results for the period ending September 30, 2012, and to provide guidance for fiscal year 2013. The company announced solid revenue and earnings performance for FY12, with diluted EPS of $2.80. Looking ahead to FY13, Cencora provided an outlook for diluted EPS in the range of $3.06 to $3.16, expecting revenue growth of 6-9% and operating income growth of 3-5%. This guidance was supported by a projected low double-digit basis point decline in operating margin and robust free cash flow generation between $750 million and $850 million.
Key Highlights
- 1AmerisourceBergen reported diluted earnings per share (EPS) of $2.80 for fiscal year 2012.
- 2The company issued fiscal year 2013 guidance, projecting diluted EPS between $3.06 and $3.16.
- 3Expected FY13 revenue growth is forecasted at 6% to 9%.
- 4FY13 operating income growth is anticipated to be between 3% and 5%.
- 5The company expects free cash flow for FY13 to range from $750 million to $850 million.
- 6AmerisourceBergen is pursuing the sale of its AndersonBrecon contract pharmaceutical packaging business to focus on core distribution, specialty, and manufacturer services.
- 7The Board of Directors approved a significant 62% increase in the annual dividend rate and a new $750 million share repurchase program.
Frequently Asked Questions
For the fiscal year ended September 30, 2012, Cencora reported diluted earnings per share (EPS) of $2.80. The company also highlighted that its contract pharmaceutical packaging business, AndersonBrecon, contributed $0.04 to this total EPS and is being divested.
Cencora provided a positive outlook for fiscal year 2013, expecting diluted EPS to be in the range of $3.06 to $3.16. This guidance is supported by projected revenue growth of 6-9% and operating income growth of 3-5%, despite a slight anticipated decline in operating margin. The company also anticipates strong free cash flow generation of $750 million to $850 million.
Cencora announced its strategic decision to sell AndersonBrecon, its contract pharmaceutical packaging division. This move is intended to allow the company to sharpen its focus on its core businesses, which include pharmaceutical distribution, specialty services, and manufacturer services.
The company announced two significant actions to return capital to shareholders: a substantial 62% increase in its annual dividend rate and the approval of a new $750 million share repurchase program. Additionally, Cencora expects to spend approximately $200 million on share repurchases in fiscal year 2013, subject to market conditions.