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Cardinal Health (CAH) to Post Q2 Earnings: What's in Store?
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Cardinal Health, Inc. (CAH - Free Report) is scheduled to report second-quarter fiscal 2022 results on Feb 3, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.3%. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative earnings surprise being 5.1%.
Q2 Estimates
For the fiscal second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.23 per share, indicating a decline of 29.3% from the prior-year quarter. The same for revenues stands at $45.15 billion, suggesting growth of 8.7% from the year-ago reported figure.
Factors to Note
Cardinal Health’s Pharmaceutical segment is the second largest pharmaceutical distributor in the United States. Despite the COVID-19 pandemic induced disruption, the segment exhibited better performance in fiscal first quarter of 2022 primarily on the back of growth in sales from Pharmaceutical Distribution and Specialty Solutions customers. This momentum is likely to have continued in the fiscal second quarter.
In fact, higher contribution from key growth areas — Specialty and Connected Care — is likely to have favored the segment’s performance in the to-be-reported quarter.
Cardinal Health’s Medical unit may have contributed significantly to the overall fiscal second-quarter performance. The segment manufactures products such as single-use surgical drapes, gowns and apparel, exam and surgical gloves, which might have driven sales in the to-be-reported quarter.
In the fiscal second quarter, revenues at this segment are likely to reflect positive pricing impact of personal protective equipment (PPE) and increase in volumes in its lab business.
Per the fiscal second-quarter earnings 2021 call, the company has been bolstering its core Medical and Pharmaceutical Distribution and product capabilities as it continues to embrace the resilient business models for the future. Cardinal Health continues to show solid progress in both its segments and supply chain work streams, and generating near and long-term efficiencies. The company’s fiscal second-quarter results are likely to reflect the impact of the same.
In October 2021, Cardinal Health announced that its cancer screening offerings from FUJIFILM Healthcare Americas Corporation and Polymedco, which can be done either outside of a doctor's office or with less invasive procedures, can aid in combating the increase in cancer-related deaths due to late-stage diagnoses from pandemic-related delays. This development is likely to have benefitted fiscal second quarter’s performance.
However, stiff competition in each of the company’s business segments is likely to have weighed on the segment margins. Consequently, this might have limited profitability in the fiscal second quarter.
Here’s What the Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Cardinal Health has an Earnings ESP of -1.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
Becton, Dickinson and Company (BDX - Free Report) , also popularly known as BD, has an Earnings ESP of +3.20% and a Zacks Rank of 3.
BD’s long-term earnings growth rate is estimated at 6.5%. The company’s earnings yield of 4.9% compares favorably with the industry’s 4.4%.
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Cardinal Health (CAH) to Post Q2 Earnings: What's in Store?
Cardinal Health, Inc. (CAH - Free Report) is scheduled to report second-quarter fiscal 2022 results on Feb 3, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 2.3%. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative earnings surprise being 5.1%.
Q2 Estimates
For the fiscal second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.23 per share, indicating a decline of 29.3% from the prior-year quarter. The same for revenues stands at $45.15 billion, suggesting growth of 8.7% from the year-ago reported figure.
Factors to Note
Cardinal Health’s Pharmaceutical segment is the second largest pharmaceutical distributor in the United States. Despite the COVID-19 pandemic induced disruption, the segment exhibited better performance in fiscal first quarter of 2022 primarily on the back of growth in sales from Pharmaceutical Distribution and Specialty Solutions customers. This momentum is likely to have continued in the fiscal second quarter.
In fact, higher contribution from key growth areas — Specialty and Connected Care — is likely to have favored the segment’s performance in the to-be-reported quarter.
Cardinal Health, Inc. Price and EPS Surprise
Cardinal Health, Inc. price-eps-surprise | Cardinal Health, Inc. Quote
Cardinal Health’s Medical unit may have contributed significantly to the overall fiscal second-quarter performance. The segment manufactures products such as single-use surgical drapes, gowns and apparel, exam and surgical gloves, which might have driven sales in the to-be-reported quarter.
In the fiscal second quarter, revenues at this segment are likely to reflect positive pricing impact of personal protective equipment (PPE) and increase in volumes in its lab business.
Per the fiscal second-quarter earnings 2021 call, the company has been bolstering its core Medical and Pharmaceutical Distribution and product capabilities as it continues to embrace the resilient business models for the future. Cardinal Health continues to show solid progress in both its segments and supply chain work streams, and generating near and long-term efficiencies. The company’s fiscal second-quarter results are likely to reflect the impact of the same.
In October 2021, Cardinal Health announced that its cancer screening offerings from FUJIFILM Healthcare Americas Corporation and Polymedco, which can be done either outside of a doctor's office or with less invasive procedures, can aid in combating the increase in cancer-related deaths due to late-stage diagnoses from pandemic-related delays. This development is likely to have benefitted fiscal second quarter’s performance.
However, stiff competition in each of the company’s business segments is likely to have weighed on the segment margins. Consequently, this might have limited profitability in the fiscal second quarter.
Here’s What the Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Cardinal Health has an Earnings ESP of -1.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
Becton, Dickinson and Company (BDX - Free Report) , also popularly known as BD, has an Earnings ESP of +3.20% and a Zacks Rank of 3.
BD’s long-term earnings growth rate is estimated at 6.5%. The company’s earnings yield of 4.9% compares favorably with the industry’s 4.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.