Cardinal Health, Inc. (NYSE:CAH) Barclays 26th Annual Global Healthcare Conference March 13, 2024 8:30 AM ET Company Participants Matt Sims - Head, Investor Relations Aaron Alt - Chief Financial Officer Conference Call Participants Stephanie Davis - Barclays Capital Stephanie Davis All right. Good morning everyone. Thank you for going bright and early with us. I am delighted to have Cardinal here to kick off our day. We have the CFO, Aaron Alt and with Head of IR, Matt Sims who's also going to keep Aaron in ...

Cardinal Health, Inc. Conference Call Summary Company Overview - **Company**: Cardinal Health, Inc. (NYSE: CAH) - **Event**: Barclays 26th Annual Global Healthcare Conference - **Date**: March 13, 2024 - **Participants**: - Matt Sims - Head of Investor Relations - Aaron Alt - Chief Financial Officer Key Points Company Strategy and Transformation - Cardinal Health is undergoing significant transformation, focusing on three main areas: improving the trajectory of the company, maintaining a strong balance sheet, and simplifying complex business operations [3][4] - The strategy includes growing the Pharma and Specialty business, executing the Medical Improvement Plan (GMPD), and enhancing shareholder value through effective asset management [6][7] Pharma and Specialty Business - The Pharma and Specialty business is considered resilient with positive underlying trends, including increased prescription demand and innovation in the industry [15][16] - The Specialty business, valued at over $30 billion in direct sales, is seen as an underappreciated area with potential for growth [16] - Recent acquisitions, such as Specialty Networks, aim to strengthen Cardinal's position in rheumatology, gastroenterology, and urology [16][20] Medical Improvement Plan - The Medical Improvement Plan aims to mitigate inflation impacts, with a reported 75% mitigation achieved by the end of Q2 [10][46] - Revenue growth of 3% was noted for the first time in two years, indicating positive trends in the medical segment [10][49] - The re-segmentation of the business has improved visibility and accountability, with a target of $300 million profit for the global medical products and distribution business by fiscal 2026 [51][52] M&A and Capital Allocation - Cardinal Health plans to invest $500 million to $600 million annually in capital expenditures, focusing on organic growth before pursuing additional M&A opportunities [22][23] - The company remains open to smart M&A activities, particularly in the Pharma and Specialty sectors [23] Drug Pricing and Regulatory Environment - Drug pricing dynamics are evolving, with less reliance on branded manufacturer price increases. The company is confident in its value proposition and ability to adapt to regulatory changes [31][34] - The Red Oak network partnership is aimed at ensuring access to medications while keeping costs down [36] Customer Relationships and Contract Renewals - Cardinal Health emphasizes the importance of maintaining strong relationships with large customers, such as CVS, and views contract renewals as growth opportunities [42][43] Future Outlook - The company aims to enhance its presence in the specialty portfolio, focusing on both oncology and other therapeutic areas [25][26] - The management team is optimistic about the long-term growth trajectory and profitability improvements across all segments [52] Additional Insights - The transformation is still in its early stages, with ongoing efforts to simplify operations and improve profitability [9][10] - The company is committed to educating stakeholders about its role in the healthcare ecosystem and addressing complexities in drug distribution and pricing [38]

Shares of Cardinal Health, Inc. (CAH) scaled a new 52-week high of $115.38 on Mar 8, before closing the session marginally lower at $115.17.Over the past year, this Zacks Rank #1 (Strong Buy) stock has gained 64.3% compared with 18.3% growth of the industry and a 32.9% rise of the S&P 500 composite.Over the past five years, the company registered earnings growth of 2.1% compared with the industry’s 12.8% rise. The company’s long-term expected growth rate of 14.2% compares with the industry’s growth projecti ...

Even though inflation in the United States has declined sharply, it remains above the Federal Reserve’s 2% target. Due to the hotter-than-expected January inflation reading, consumer sentiment took a beating. The University of Michigan’s consumer sentiment survey displayed a reading of 76.9 in February, down from the January figure of 79.Fed Chair Jerome Powell's recent statement that he needs to "see a little bit more data" before rate cuts become a reality highlights that interest rates will remain high, ...

Dividend investing remains a popular choice, irrespective of market conditions. This strategy focuses on companies that not only pay dividends but also consistently increase them over time. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors. Additionally, it provides a sense of security in times of market uncertainty or downturns, as dividend-paying stocks can reduce the volatility of a portfolio and tend to outperform in a choppy market.Stocks with a ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 8:Powell Industries, Inc. (POWL) : This custom equipment manufacturer has seen the Zacks Consensus Estimate for its current year earnings increasing 44.2% over the last 60 days.Powell Industries has a PEG ratio of 1.53 comparedwith 1.64 for the industry. The company possesses a Growth Score of A.Cardinal Health, Inc. (CAH) : This healthcare services and products company carries a Zacks Rank #1, and ...

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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 6:PagSeguro Digital Ltd. (PAGS) : This fintech services company carries seen the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.PagSeguro Digital has a PEG ratio of 1.03 comparedwith 1.89 for the industry. The company possesses a Growth Score of B.Cardinal Health, Inc. (CAH) : This healthcare services and products company carries a Zacks Rank #1, and has ...

Low-beta stocks can provide several beneficial advantages for portfolios, including defensive qualities and stabilization when combined with high-beta stocks, helping to provide a more balanced risk profile.And for those seeking a less volatile approach, three low-beta stocks – Cigna Group (CI) , Cardinal Health (CAH) , and W.R. Berkley (WRB) – could be considered. All three sport a favorable Zacks Rank, carry solid growth, and sport sound valuations.Below is a chart illustrating the performance of each ove ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 4:PagSeguro Digital Ltd. (PAGS) : This fintech services company carries seen the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.PagSeguro Digital has a PEG ratio of 1.07 compared with 2.70 for the industry. The company possesses a Growth Scoreof B.Cardinal Health, Inc. (CAH) : This healthcare services and products company carries a Zacks Rank #1, and has ...