Major Healthcare Service Provider Cardinal Health Issues Upbeat Outlook, Shares Rise

Cardinal Health Inc CAH reported Q1 FY24 adjusted EPS of $1.73, up 44% Y/Y, beating the consensus of $1.41.

Q1 GAAP operating loss was $14 million, and GAAP diluted EPS was $0.02, driven by a Medical segment goodwill impairment compared to an income of $137 million a year ago.

Sales increased 10% to $54.80 billion, beating the consensus of $54.76 billion.

Q1 revenue for the Pharmaceutical segment increased 11% to $51 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Q1 revenue for the Medical segment was flat at $3.8 billion, reflecting lower PPE volumes and pricing, offset by growth in at-home solutions and inflationary impacts, including mitigation initiatives.

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Outlook: Cardinal Health raised its FY24 adjusted EPS guidance to $6.75-$7.00 from prior guidance of $6.50-$6.75 versus consensus of $6.68.

The company reiterated its FY24 Pharmaceutical segment profit outlook for 4%-6% growth on higher ending fiscal year 2023 Pharmaceutical segment profit. 

The guidance includes an update to the company's Pharmaceutical segment profit outlook for fiscal 2024 to 7%-9% growth, from 4% to 6% growth. 

Price Action: CAH shares are up 3.61% at $97.17 during the premarket session on the last check Friday.