NEW YORK (TheStreet) -- AmerisourceBergen (ABC) - Get Report stock is down by 7.81% to $77.71 on heavy trading volume this afternoon, after the company reported mixed financial results for the most recent quarter and cut its 2016 earnings forecast.
The drug wholesaler lowered its full-year earnings guidance to a range between $5.44 and $5.54 per share, down from its previous outlook for earnings between $5.73 and $5.83 per share.
The reduced forecast reflects lower generic pricing trends and smaller contributions from new generic drugs, CEO Steven Collis said in a statement.
"In addition, an internal strategic initiative we had launched to increase sales of PRxO® Generics and to increase our independent retail segment revenues is ramping slower than we had anticipated," Collis noted.
AmerisourceBergen reported mixed results for the most recent quarter.
Adjusted earnings of $1.68 per share beat analysts' estimates for $1.59 per share. Revenue increased by 9.3% year-over-year to $35.7 billion, but fell short of analysts' expectations for $35.83 billion.
About 8.69 million shares of AmerisourceBergen have been traded so far today, well above the company's average trading volume of roughly 2.19 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
AmerisourceBergen's strengths such as its compelling growth in net income, revenue growth, notable return on equity and impressive record of earnings per share growth outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: ABC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.