Healthcare provider Cardinal Health, Inc. (CAH) on Monday reported a 44 percent increase in profit for the first quarter from last year, reflecting higher revenues at both its pharmaceutical and medical segments. The results for the quarter beat analysts' estimates. Looking ahead, the company raised its earnings outlook for fiscal 2016.
Earlier in July, Cardinal Health completed the $1.115 billion acquisition of privately-held generic drug distributor Harvard Drug Group LLC. The company will also acquire Johnson & Johnson's (JNJ) Cordis business, a maker of cardiology and endovascular devices, for $1.94 billion.
The company's first-quarter net earnings increased to $383 million or $1.15 per share from $266 million or $0.78 per share the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $1.38 per share, compared to $1.00 per share in the same period last year.
On average, fifteen analysts polled by Thomson Reuters expected the company to report earnings of $1.10 per share. Analysts' estimates typically exclude special items.
Revenue for the quarter rose 17 percent to $28.1 billion from $24.1 billion in the previous year. Wall Street analysts were looking for revenue of $27.18 billion.
Pharmaceutical segment revenues increased 19 percent from last year to $25.1 billion, due to growth from existing and new customers.
Revenue for the Medical segment grew 2 percent to $2.9 billion, driven by growth in Cardinal Health-branded products and growth in the Cardinal Health at Home platform.
Looking ahead to fiscal 2016, Cardinal Health now forecasts full-year adjusted earnings in a range to $5.15 to $5.35 per share, up from the prior range of $4.85 to $5.05 per share. The Street expects earnings of $5.02 per share for the year.
For comments and feedback contact: editorial@rttnews.com
Business News