Cardinal Health Reports Strong First-Quarter Profit

Cardinal Health Inc. (CAH) exceeded expectations with its fiscal first-quarter profit, leading to a surge in share prices. The drug distributor reported a record-breaking climb of 1.3% in premarket trading on Friday. Although revenue fell slightly below projections, the company raised its full-year outlook.

Impressive Performance

Net income for the quarter ending September 30 dropped to $5 million, or 2 cents a share, compared to $110 million, or 40 cents a share, in the same period last year. However, after adjusting for nonrecurring items such as a $581 million goodwill impairment connected to the medical business, adjusted earnings per share rose by an impressive 44% to reach $1.73. This figure surpassed the FactSet consensus of $1.40.

Steady Revenue Growth

While revenue grew by 10.4% to $54.76 billion, it fell just short of the FactSet consensus of $54.85 billion. Pharmaceutical revenue experienced a notable increase of 11.4% to $51.0 billion, although it missed the projection of $51.3 billion. On the other hand, medical revenue remained steady at $3.8 billion as expected.

Positive Outlook

For fiscal 2024, Cardinal Health Inc. has raised its adjusted EPS guidance range from $6.50-$6.75 to $6.75-$7.00. This optimistic outlook reinforces the company's confidence in its future financial performance.

Market Reaction

While the S&P 500 has experienced a decline of 4.1% over the past three months, Cardinal Health Inc.'s stock has remained relatively stable during the same period.

Overall, Cardinal Health Inc.'s strong first-quarter profit results and improved outlook demonstrate its resilience and ability to navigate challenging market conditions effectively.