CAH - Cardinal updates forecast plans to buy back at least $2B shares over 3 years

2023-06-08 11:02:41 ET

Cardinal Health ( NYSE: CAH ) updated its financial forecast and announced a $3.5B share buyback program.

The healthcare services company said it now sees reporting fiscal 2023 adjusted earnings per share of $5.65 to $5.80, narrowed from its prior range of $5.60 to $5.80. Fiscal 2024 adjusted earnings per share are seen at $6.45 to $6.70.

Cardinal also said that its board of directors has authorized the company to buy back up to $3.5B shares by Dec. 31, 2027. The company plans to buy back at least $2B over the next three years.

For fiscal 2024, the company sees its pharmaceutical division generating revenue growth of around 10%, with the segment's profit increasing 4% to 6%. Revenue for its medical business is expected to rise around 3%, with the segment reporting a profit of approximately $400M.

The company is also forecasting compound annual revenue growth for fiscal 2024 to 2026, with fiscal 2023 as the baseline, of around 10% for its pharmaceuticals business and 3% to 4% for its medical division. The company's adjusted earnings per share are expected to grow by 12% to 14%.

The new forecast was released as part of Cardinal's investor day , which takes place on Wednesday.

More on Cardinal:

Cardinal Health to merge Outcomes business into TDS for minority stake

Cardinal Health beats Q1 top and bottom line estimates; updates FY23 outlook

Cardinal Health: Focus On Core Strengths And Operational Efficiency Enabling Margin Expansion

Cardinal Health: Not A Long-Term Investment

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