Healthcare provider Cardinal Health, Inc. (CAH) on Thursday reported a 26 percent increase in profit for the fourth quarter from last year, reflecting higher revenues at both its pharmaceutical and medical segments.
Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company raised the lower end of 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 fourth-quarter net earnings increased to $295 million or $0.88 per share from $234 million or $0.68 per share the prior-year quarter.
Excluding acquisition-related costs, restructuring-related charges and other items, adjusted earnings from continuing operations for the quarter were $1.00 per share, compared to $0.83 per share in the same period last year.
On average, eighteen analysts polled by Thomson Reuters expected the company to report earnings of $0.99 per share. Analysts' estimates typically exclude special items.
Revenue for the quarter rose 20 percent to $27.55 billion from $22.89 billion in the previous year. Wall Street analysts were looking for revenue of $26.05 billion.
Pharmaceutical segment revenues increased 23 percent from last year to $24.7 billion, due to growth from existing and new customers.
Revenue for the Medical segment grew 2 percent to $2.9 billion, driven by contributions from acquisitions and growth in the Cardinal Health at Home platform, partially offset by a decline in Canada.
Looking ahead to fiscal 2016, Cardinal Health raised the midpoint of its outlook for adjusted earnings per share from continuing operations, citing its strong fiscal year 2015 performance and the momentum the company has carried into fiscal year 2016.
The company now forecasts full-year adjusted earnings in a range to $4.85 to $5.05 per share, compared to the prior range of $4.75 to $5.05 per share. The Street expects earnings of $4.93 per share for the year.
The company does not provide quarterly guidance, it expects financial performance to be weighted toward the second half of fiscal 2016.
CAH is trading at $83.46, down $0.89 or 1.05 percent on a volume of 1.35 million shares.
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