- Cardinal Health CAH reported the third-quarter FY21 adjusted EPS of $1.53, which missed the consensus estimate of $1.55. The earnings dropped 6% Y/Y, reflecting a higher non-GAAP effective tax rate.
- GAAP EPS decreased to $0.40 from $1.19 in the last year due to the previously disclosed tax effect of the litigation charge.
- Sales of $39.30 billion lagged the consensus of $40.09 billion but did not change much from a year ago.
- Revenue for the Pharmaceutical segment was flat Y/Y at $35.1 billion, but profit decreased 4% to $511 million primarily due to COVID-19-related volume declines in the company's generics program.
- Medical segment sales increased 3% to $4.2 billion, driven by a net positive impact from COVID-19 on products and distribution led by personal protective equipment (PPE) sales and higher volumes in Lab business, partially offset by the adverse effects of reduced elective procedures.
- Adjusted operating earnings decreased 4% Y/Y to $689 million due to the negative impact from COVID-19, primarily concentrated in the Pharmaceutical segment.
- GAAP operating earnings decreased 16% Y/Y to $473 million, primarily due to the write-down of the net assets held for sale from the planned divestiture of the Cordis business.
- Guidance: Cardinal Health narrowed its FY21 EPS guidance range to $5.90 to $6.05, from $5.85 to $6.10 prior.
- It raised the quarterly dividend by 1% to $0.4908 per share or $1.96 annually. The dividend will be payable on July 15 of the record date of July 1.
- Price Action: CAH shares are down 10.3% at $54.57 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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