Cardinal Health Inc. (CAH - Free Report) entered an agreement to buy privately-held AccessClosure Inc. for $320 million. AccessClosure is a manufacturer and distributor of extravascular closure devices in the U.S. with $80 million in annual sales. It is popular for its Mynx suite of patient-friendly vascular closure devices.
Following the announcement, shares of Cardinal Health escalated 1.5% to close at $71.31 yesterday. The acquisition is expected to be completed by early June this year and it is not going to have a material impact on the company’s earnings in fiscal 2014 but modestly accretive to the same in fiscal 2015.
AccessClosure’s Mynx is a clinically proven product helpful in sealing the femoral artery using an effective sealant that dissolves within a month, leaving no marks of a healed artery. It also helps patients to ambulate safely within a short time, meaning they could return home very soon.
Cardinal Health posted adjusted earnings per share of 90 cents for the second quarter of fiscal 2014, which surpassed the Zacks Consensus Estimate by 7 cents but fell short of the year-ago level of 93 cents by 3.2% due to lower revenues.
Net adjusted earnings slid 1.3% to $313 million from $317 million in the second quarter of fiscal 2013. On a reported basis, net earnings decreased to $275 million or 79 cents per share in the quarter from $303 million or 88 cents per share in the year-ago quarter.
Revenues in the quarter went down about 12% to $22,240 million, due to lower revenues from the Pharmaceutical segment. Nevertheless, the top line beat the Zacks Consensus Estimate of $20,782 million.
For fiscal 2014, Cardinal Health raised its forecast for adjusted earnings per share to the band of $3.75 to $3.85 from the earlier guidance of $3.62 to $3.72. Management cited the company’s efficient operating performance as the reason behind the upgraded guidance. The current Zacks Consensus Estimate of $3.83 for the year lies within the guided range.
Cardinal Health currently has a Zacks Rank #2 (Buy). Other Zacks Rank #2 (Buy) stocks from the medical/dental supplies industry include CR Bard Inc. , Becton, Dickinson and Company (BDX - Free Report) and The Cooper Companies Inc. (COO - Free Report) .