Cardinal Health's Q4 Earnings Hit By Inflationary Impacts, Supply Chain Constraints; Lowers FY22 Outlook

Cardinal Health CAH has reported Q2 FY22 adjusted EPS of $1.27, down 27% Y/Y, beating the Street estimate of $1.23.

• Earnings declined primarily due to inflationary impacts and global supply chain constraints in the Medical segment.
• Q2 sales increased 9% Y/Y to $45.5 billion, missing the consensus estimate of $45.57 billion.
• Related: Cardinal Health Expects Inflationary Impact, Supply Chain Constraints To Hit Volumes In FY22.
• The pharmaceutical segment increased 11% to $41.4 billion, driven primarily by branded pharmaceutical sales growth from large Pharmaceutical Distribution and Specialty customers.
• The medical segment sales decreased 5% to $4.1 billion, primarily due to Cordis's divestiture.
• Outlook: For FY22, Cardinal Health revised adjusted EPS guidance to $5.15 - $5.50, down from the previous guidance of $5.60 - $5.90, compared to the consensus of $5.37.
• The guidance reflects the previously announced additional $150 million - $175 million impacts from increased inflation and global supply chain constraints and a lower-than-expected offset from pricing actions. 
• The Company has updated the Medical segment profit outlook of 30 - 45% decline, from mid-single to low-double-digit percentage decline.
• Price Action: CAH shares are down 1.51% at $50.82 during the premarket session on the last check Thursday.