AmerisourceBergen Corporation (ABC) recently declared a dividend of 8 cents per share. The company pays an industry-leading dividend yield of 1.13%. In late January, the company reported record earnings of 52 cents for the fiscal first quarter, topping the Zacks Consensus Estimate by 13%. Revenue hit a record $19.3 billion, a year-over-year spike of 11.5%.

Company Description

AmerisourceBergen Corporation, a pharmaceutical services companies serving the United States, Canada and selected global markets, serves both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel.

The company distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to various healthcare providers.

With more than $70 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs approximately 10,000 people.

Solid Income

The company recently declared a dividend of 8 cents per share, noting that it is payable March 1 to stockholders of record at the close of business on February 12.

AmerisourceBergen pays an industry-leading dividend yield of 1.13%

Robust Quarterly Results

The company also recently reported record earnings of 52 cents per share for the fiscal first quarter, topping the Zacks Consensus Estimate by 13%. Revenue hit a record $19.3 billion, a year-over-year spike of 11.5%.

Management cited the 11.5% revenue increase, attributing half of the growth to new business acquired last year. Sales of generic pharmaceuticals were strong, with recent generic launches significantly contributing to gross profit growth in the quarter.

The company said its balance sheet is even stronger after its November bond offering, and it has good financial flexibility. “We are off to a strong start for the fiscal year, demonstrating the strength of our two growth drivers – generics and specialty pharmaceuticals,” said R. David Yost, AmerisourceBergen’s President and Chief Executive Officer.

Bullish Forecasts

AmerisourceBergen boosted its fiscal year 2010 earnings per share outlook to a range of $1.89 to $1.98 per share.

Analysts polled by Zacks are calling for earnings of $2.00 per share for the year ending September 2010, a 1-cent bump over the past week.

For the following year, the Zacks Consensus Estimate of $2.19 per share is also up a penny over the past week.

Alex Kolb is the Growth & Income Stock Strategist for Zacks.com. He also writes the popular daily commentary column for the ZacksElite.com service.

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