AmerisourceBergen Was the S&P 500’s Top Loser on August 3
The top losers in the S&P 500 on August 3, 2017, were:
- AmerisourceBergen (ABC) fell 10.5%.
- Concho Resources (CXO) fell 8.7%.
- Hologic (HOLX) fell 8.6%.
- Apache (APA) fell 8.0%.
- Noble Energy (NBL) fell 8%.
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AmerisourceBergen, a US drug wholesale company, was the S&P 500’s biggest loser on Thursday. A mixed earnings report and cheaper generic drug prices dented the market sentiment on AmerisourceBergen.
In 2Q17, the company’s earnings fell to $50.35 million from $349.16 million reported in the same period last year. The adjusted EPS (earnings per share) was $1.43—higher than the market’s estimate of $1.37. The revenues rose to $38.71 billion from $36.88 billion reported in 2Q16 but were less than the market’s estimate of $39.13 billion. AmerisourceBergen upgraded the lower range of its fiscal 2017 EPS estimate. The adjusted EPS guidance was upgraded from 5.77–$5.92 to $5.82–$5.92.
In addition to the mixed earnings report, the negative trends in generic drug prices also weighed on AmerisourceBergen’s stock prices. According to AmerisourceBergen’s president and CEO, Steven Collis, the company expects drug price deflation to be -7% to -9%. The negative price trend in generic drug prices is expected to continue into 2018. AmerisourceBergen opened lower on Thursday and fell to $81.71—the lowest daily close in more than three months.
In the next part, we’ll discuss how the US dollar and US Treasury yields performed on August 4.