Free Research Report as Cardinal Health’s Adjusted EPS Beat Expectations

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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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cardinal Health most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

www.active-investors.com/registration-sg/?symbol=CAH

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.

Segment Details

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.

Cash Matters

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.

Outlook

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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