LONDON, UK / ACCESSWIRE / December 15, 2017 / Active-Investors free earnings report on Cardinal Health, Inc. (NYSE: CAH) (“Cardinal”) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=CAH. The Company posted its first quarter fiscal 2018 results on November 06, 2017. The leading global integrated healthcare services provider’s revenue grew 2% on a y-o-y basis. Register today and get free access to our complimentary member’s area where many more reports are available:
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Earnings Highlights and Summary
In Q1 FY18, Cardinal’s revenues grew 1.88% to $32.64 billion on a y-o-y basis compared to $32.04 billion in Q1 FY17, missing analysts’ estimates of $33.43 billion.
The Company’s gross margin was $1.67 billion for the reported quarter compared to $1.59 billion in Q1 FY17, increasing 5.15% on a y-o-y basis. Cardinal’s selling, general, and administrative expenses (SG&A) were $1.06 billion for the reported quarter compared to $920.00 million in Q1 FY17, increasing 15.43% on a y-o-y basis due to acquisitions and costs related to a multi-year project to replace the Pharmaceutical segment’s finance and operating information systems.
Cardinal’s operating earnings were $262.00 million in Q1 FY18 compared to $535.00 million in Q1 FY17, declining 51.03%. The Company’s non-GAAP operating earnings were $610.00 million in Q1 FY18 compared to $669.00 million in Q1 FY17, declining by 8.81%.
Cardinal’s net income was $115.00 million for the reported quarter compared to $309.00 million in Q1 FY17, dropping 62.78%. The diluted earnings per share (EPS) was $0.36 in Q1 FY18 compared to $0.96 in Q1 FY17, reflecting a decline of 62.50%.The Company’s EPS, adjusted for amortization and restructuring costs, declined 12.10% to $1.09 in Q1 FY18 compared to $1.24 in Q1 FY17, beating analysts’ estimates of $1.01.
Cardinal’s Pharmaceutical segment reported revenues of $28.92 billion in Q1 FY18 compared to $28.76 billion in Q1 FY17, slightly increasing by 0.55% due to a sales growth from specialty and pharmaceutical distribution customers. The segment’s profit was $467.00 million in the reported quarter compared to $534.00 million in Q1 FY17, declining by 12.55% due to a negative impact of generic pharmaceutical customer pricing changes.
Cardinal’s Medical segment reported revenues of $3.72 billion in Q1 FY18 compared to $3.28 billion in Q1 FY18, advancing by 13.57% due to contributions from acquisitions of $333.00 million, inclusive of the Patient Recovery Business acquisition. The segment’s profit was $129.00 million in Q1 FY18 compared to $127.00 million in Q1 FY17, declining 1.57% on a y-o-y basis, due to an unfavorable cost of products sold impact from the fair value step-up of inventory acquired with the Patient Recovery Business.
Cardinal had cash and cash equivalents of $1.18 billion in Q1 FY18 compared to $2.00 billion in Q1 FY17. The Company’s net inflow from operating activities was $1.18 billion for the reported quarter compared to $104.00 million in Q1 FY17.
During Q1 FY18, Cardinal repurchased $150.00 million of its common shares, funded by available cash and short-term borrowings. On July 29, 2017, the Company acquired the Patient Recovery Business from Medtronic Plc for $6.10 billion in cash, funded by a $4.50 billion of new long-term debt issued in June 2017.
For the fiscal year 2018, Cardinal anticipates non-GAAP diluted EPS to be in the range of $4.85 – $5.10, and expects the Pharmaceutical segment’s profit to be less than in the fiscal year 2017, due to generic pharmaceutical customer pricing changes.
Stock Performance Snapshot
December 14, 2017 – At Thursday’s closing bell, Cardinal Health’s stock was marginally down 0.36%, ending the trading session at $60.35.
Volume traded for the day: 3.27 million shares.
Stock performance in the last month – up 5.75%
After yesterday’s close, Cardinal Health’s market cap was at $19.42 billion.
Price to Earnings (P/E) ratio was at 17.58.
The stock has a dividend yield of 3.07%.
The stock is part of the Services sector, categorized under the Drugs Wholesale industry.
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