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Cardinal Health (CAH) to Post Q1 Earnings: What's in Store?
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Cardinal Health, Inc. (CAH - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 4, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 10.26%. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative earnings surprise being 3.78%.
Q1 Estimates
For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at 96 cents per share, indicating a decline of 25.6% from the prior-year quarter. The same for revenues stands at $46.88 billion, suggesting growth of 6.6% from the year-ago reported figure.
Factors to Note
Cardinal Health's Pharmaceutical segment is the second-largest pharmaceutical distributor in the United States. In the fourth quarter of fiscal 2022, pharmaceutical revenues amounted to approximately $43.3 billion, up 13.1% on a year-over-year basis. The performance reflects branded pharmaceutical sales growth from Pharmaceutical Distribution and Specialty Solutions customers. This momentum is likely to have continued in the fiscal first quarter.
The company’s generics program sales were strong during the last reported quarter. The company's to-be-reported quarter results are likely to gain from this trend.
In June, the company announced the addition of a new distribution center in the Columbus, OH, area, lending support to Cardinal Health’s at-Home Solutions business.
These developments are likely to have favored the company's fiscal first-quarter performance.
It is worth mentioning here that in the fiscal fourth quarter, Cardinal Health's Medical segment displayed considerable weakness due to the divestiture of the Cordis business as well as a decrease in products and distribution volumes. The trend is expected to have continued in the soon-to-be-reported quarter.
Cardinal Health’s Medical segment has been facing declining sales, following the divestiture of the Cordis business in 2021. Moreover, a decrease in products and distribution volumes hurt the segment’s top line during fourth-quarter fiscal 2022. During the same quarter, the segment’s bottom line was hurt primarily due to net inflationary impacts and global supply chain restrictions in products and distribution. The company expects the segment to record a loss $25 million to $55 million in first-quarter fiscal 2023.
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 -3.40%. 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 #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2.
McKessonearnings surpassed estimates in three of the trailing four quarters and lagged the same once, with the average being 13%. Shares of MCK have gained 58.8% so far this year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo (MASI - Free Report) has an Earnings ESP of +4.35% and is a Zacks #3 Rank stock. MASI has an estimated growth rate of 12% for 2022.
Masimo’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 6.96%.
Sight Sciences, Inc. (SGHT - Free Report) has an Earnings ESP of +1.29% and is a Zacks #3 Ranked stock. SGHT has an estimated growth rate of 20.3% for 2022.
Sight Sciences’ projected EPS growth currently stands at 24.3%, compared with the industry’s 17%.
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Cardinal Health (CAH) to Post Q1 Earnings: What's in Store?
Cardinal Health, Inc. (CAH - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 4, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 10.26%. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative earnings surprise being 3.78%.
Q1 Estimates
For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at 96 cents per share, indicating a decline of 25.6% from the prior-year quarter. The same for revenues stands at $46.88 billion, suggesting growth of 6.6% from the year-ago reported figure.
Factors to Note
Cardinal Health's Pharmaceutical segment is the second-largest pharmaceutical distributor in the United States. In the fourth quarter of fiscal 2022, pharmaceutical revenues amounted to approximately $43.3 billion, up 13.1% on a year-over-year basis. The performance reflects branded pharmaceutical sales growth from Pharmaceutical Distribution and Specialty Solutions customers. This momentum is likely to have continued in the fiscal first quarter.
The company’s generics program sales were strong during the last reported quarter. The company's to-be-reported quarter results are likely to gain from this trend.
In June, the company announced the addition of a new distribution center in the Columbus, OH, area, lending support to Cardinal Health’s at-Home Solutions business.
Cardinal Health, Inc. Price and Consensus
Cardinal Health, Inc. price-consensus-chart | Cardinal Health, Inc. Quote
These developments are likely to have favored the company's fiscal first-quarter performance.
It is worth mentioning here that in the fiscal fourth quarter, Cardinal Health's Medical segment displayed considerable weakness due to the divestiture of the Cordis business as well as a decrease in products and distribution volumes. The trend is expected to have continued in the soon-to-be-reported quarter.
Cardinal Health’s Medical segment has been facing declining sales, following the divestiture of the Cordis business in 2021. Moreover, a decrease in products and distribution volumes hurt the segment’s top line during fourth-quarter fiscal 2022. During the same quarter, the segment’s bottom line was hurt primarily due to net inflationary impacts and global supply chain restrictions in products and distribution. The company expects the segment to record a loss $25 million to $55 million in first-quarter fiscal 2023.
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 -3.40%. 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 #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2.
McKessonearnings surpassed estimates in three of the trailing four quarters and lagged the same once, with the average being 13%. Shares of MCK have gained 58.8% so far this year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo (MASI - Free Report) has an Earnings ESP of +4.35% and is a Zacks #3 Rank stock. MASI has an estimated growth rate of 12% for 2022.
Masimo’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 6.96%.
Sight Sciences, Inc. (SGHT - Free Report) has an Earnings ESP of +1.29% and is a Zacks #3 Ranked stock. SGHT has an estimated growth rate of 20.3% for 2022.
Sight Sciences’ projected EPS growth currently stands at 24.3%, compared with the industry’s 17%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.