Pharma Distribution Giant Cardinal Health Lifts 2025 Guidance After Q4 Earnings Beat, Raises Stock Buyback Expectation By $250M

Wednesday, Cardinal Health Inc CAH reported fourth-quarter 2024 adjusted EPS of $1.84, up 29% year over year, beating the consensus of $1.73.

Cardinal Health is a distributor of pharmaceuticals, a manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities.

Sales increased 12% to $59.87 billion, beating the consensus of $58.64 billion.

The pharmaceutical segment revenue increased 12% to $55.6 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Also Read: Drug Distributing Giant Cardinal Health Will Not Renew OptumRx Distribution Pact, Stock Plunges.

Medical segment revenue increased by 2% to $3.1 billion, driven by volume growth from existing customers.

Cardinal Health reiterated its fiscal year 2026 target of approximately $300 million in Global Medical Products and Distribution (GMPD) segment profit.

Additionally, by fiscal year 2026, the company is targeting at least $500 million in near-term value creation from GMPD through further simplification actions and working capital improvements, with the cash to be deployed according to its disciplined capital allocation framework.

Therefore, the company is raising its share repurchase expectations in fiscal year 2025 by $250 million to $750 million.

Outlook: Cardinal Health raised its fiscal year 2025 adjusted EPS guidance to $7.55-$7.70 from the preliminary outlook of at least $7.50 versus the consensus of $7.53.

The company updated its Pharmaceutical and Specialty Solutions segment profit growth outlook to 1%-3% growth from at least 1%.

For the Global Medical Products and Distribution segment, the company expects revenue growth of 3%-5%. Overall revenue is expected to grow between 10%-12%.

“We enter the new fiscal year with momentum and confidence, evidenced by our raised fiscal year 2025 guidance,” said Jason Hollar, CEO of Cardinal Health.

Price Action: At last check on Wednesday, CAH stock was up 5.14% at $107.85 during the premarket session.

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