Amerisource Stung by Cutback

A major industry transition continues to cause painful side effects for AmerisourceBergen (ABC Quote).

With inventories -- and the profits they once generated -- falling, the drug distributor foresees a "difficult" year that will leave results far below Wall Street expectations. The company warned on Monday that inventory levels could plunge by roughly $1 billion, or 20%, this year and drag earnings down with them.

"We expected ABC to cut guidance," wrote Baird analyst Eric Coldwell, who has an outperform rating on the stock. "But the cut was worse than expected." ...