MCK - Cardinal Health stock gains after raising profit outlook
2023-11-03 08:03:49 ET
Cardinal Health ( NYSE: CAH ) shares rose in early trading on Friday after the pharmaceuticals distributor raised its fiscal year 2024 outlook following its Q1 results .
The company has raised its full-year guidance range for non-GAAP diluted EPS to $6.75-$7.00, from its previous forecast of $6.50-$6.75. This includes an expected 7-9% growth in pharmaceutical segment profit (previously 4-6%).
Analysts project the firm to earn $6.68 on $226.12B revenue in the year.
Q1 revenues rose 10% Y/Y to $54.8B but missed consensus estimates, with the pharmaceutical segment posting a 11% increase to $51B driven by brand and specialty pharmaceutical sales growth from existing customers.
Medical segment revenues were flat at $3.8B, reflecting lower PPE volumes and pricing inspite of growth in at-home products and inflationary mitigation initiatives.
GAAP operating loss was $14M and EPS beat analysts' expectations. Cardinal ( CAH ) recorded a non-cash, pre-tax goodwill impairment of $581M related to its medical segment business, owing to an increase in the discount rate.
Non-GAAP operating earnings increased 35% to $571M, with the company attributing growth to significant increases in both pharmaceutical segment and medical segment profit.
Pharmaceutical segment profit rose thanks to higher contribution from brand and specialty products, including distribution of COVID-19 vaccines, and positive generics program performance. Medical segment profit benefited from an improvement in net inflationary impacts, including mitigation initiatives.
Fellow medical distributors Cencora ( COR ) and McKesson ( MCK ) also posted their latest quarterly numbers this week. Cencora beat Q4 top and bottom line expectations while McKesson missed consensus revenue estimates .
More on Cardinal Health
- Cardinal Health: A Revenue Growth Gem Plagued By Symptoms Of Negative Equity
- Cardinal Health, Inc. (CAH) Baird's Global Healthcare Conference 2023 (Transcript)
- Cardinal Health, Inc. 2023 Q4 - Results - Earnings Call Presentation
- Cardinal Health Non-GAAP EPS of $1.73 beats by $0.32, revenue of $54.8B misses by $130M
- Cardinal Health Q3 2024 Earnings Preview
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Cardinal Health stock gains after raising profit outlook