CAH - Cardinal Health Reaffirms Fiscal 2024 non-GAAP EPS Guidance and Long-term Targets Amidst Nonrenewal of OptumRx Customer Contracts | Benzinga
DUBLIN, Ohio, April 22, 2024 /PRNewswire/ -- Cardinal Health (NYSE:CAH) announced today that its pharmaceutical distribution contracts with OptumRx, which expire at the end of June 2024, will not be renewed. The company reaffirmed its fiscal 2024 non-GAAP diluted EPS guidance of $7.20 to $7.35. Despite the nonrenewal of the OptumRx contracts, the company also reiterated both its Pharmaceutical and Specialty Solutions long-term segment profit CAGR target of 4% to 6% and its consolidated non-GAAP EPS CAGR target of 12% to 14% for fiscal years 2024 to 2026, relative to a fiscal 2023 baseline. Affirming these targets reflects the company's ability to achieve sustained growth over the long term and deliver attractive returns for shareholders through an ongoing focus on value creation.
While Cardinal Health has not yet provided financial guidance for fiscal 2025, the company expects growth in fiscal 2025 in both Pharmaceutical and Specialty Solutions segment profit and non-GAAP diluted EPS. The company expects to partially offset the impact of OptumRx through a combination of new customer wins, specialty growth and other actions.
Sales to OptumRx generated 16% of Cardinal Health's consolidated revenue in fiscal year 2023. Approximately 90% of these sales were serviced by the company's Pharmaceutical Distribution business and primarily ...