What's Going On With Cardinal Health Shares Today?

Cardinal Health Inc CAH shares are trading lower by around 4% after the company provided an update on its FY24 outlook and ongoing portfolio review.

Outlook: CAH now expects FY24 adjusted EPS to be at the high end of its $6.75-$7.00 range (vs. consensus $6.95).

This is led by anticipated favorability in FY24 Interest and shares outstanding due to continued strong cash flow generation, resulting in higher-than-expected cash balances and incremental share repurchase of $250 million in Q2.

CAH reiterated its long-term adjusted EPS target of growth of 12%-14%. The company confirmed its previously announced target for a Medical Improvement Plan of at least $650 million of segment profit by FY26.

Operational Update: The company completed a review of growth businesses within the Medical Segment, including investing in and further developing at-Home Solutions and OptiFreight Logistics.

The company continues review of Global Medical Products and Distribution business to drive operational performance through the Medical Improvement Plan.

Effective January 1, 2024, CAH updated its enterprise operating and segment reporting structure, including two reportable segments - Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD), which will be reflected in its financial reporting beginning Q3 FY24.

The company will provide further updates and details on its Q2 results and FY24 guidance on February 1, 2024.

Also Read: Becton Dickinson Recalls Certain Infusion Pumps, Citing Issues With Cardinal Health's Syringes

Price Action: CAH shares are trading lower by 4.10% at $100.86 on the last check Tuesday.