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Cardinal (CAH) Beats on Q2 Earnings and Revenues

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Cardinal Health (CAH - Free Report) is a healthcare services company engaged in providing pharmaceutical and medical products and services in the United States and International markets. The company primarily operates in two segments, Pharmaceutical and Medical.

Currently, Cardinal Health has a Zacks Rank #2 (Buy) but that could change following its second-quarter fiscal 2018 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here). We have highlighted some of the key details from the just-released announcement below:

Earnings: Cardinal Health’s adjusted earnings increased 13% on a year-over-year basis to $1.51 per share. Excluding a 20 cents benefit from tax reform, the adjusted earnings per share is $1.31. Notably, both the figures outpaced the Zacks Consensus Estimate of $1.14.

Revenues: Revenues increased 6% on year-over-year basis to almost $35.19 billion, beating the Zacks Consensus Estimate of $34.66 billion.

Key Stats: Pharmaceutical revenues surged 5% to $31.1 billion while revenues from Medical segment increased 19% to $4 billion in the reported quarter.

Pharmaceutical segment revenues increased due to strong growth from the Specialty business and higher number of Pharmaceutical Distribution business customers.

The growth in the Medical segment is was driven by contributions from the acquisition of the Patient Recovery business.

Major Factors: The company raised its guidance for fiscal 2018 adjusted earnings per share to $5.25-$5.50, to reflect 40 cents per share of benefit from the lower federal rate due to U.S. tax reform.

Stock Price: Over the last three months, shares of Cardinal Health have outperformed the broader industry. The stock returned 7.5%, above the industry’s gain of 4.4%.

However, following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Cardinal Health earnings report later!

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