Revenue and Earnings - Revenue for the three and six months ended December 31, 2024 decreased 4 percent to $55.3 billion and $107.5 billion, respectively, primarily due to the expiration of the OptumRx contracts[13] - GAAP operating earnings for the three months ended December 31, 2024 increased 9 percent to $549 million, while for the six months, it increased to $1.1 billion from the prior-year period[15] - Non-GAAP operating earnings increased 9 percent to $635 million for the three months ended December 31, 2024, and increased 10 percent to $1.3 billion for the six months[16] - GAAP diluted EPS for the three and six months ended December 31, 2024 increased to $1.65 and $3.35, respectively[20] - Non-GAAP diluted EPS for the three and six months ended December 31, 2024 increased 2 percent to $1.93 and 6 percent to $3.81, respectively[21] Cash and Debt - Cash and equivalents balance was $3.8 billion at December 31, 2024, down from $5.1 billion at June 30, 2024[22] - Total long-term obligations increased to $7.6 billion at December 31, 2024, from $5.1 billion at June 30, 2024[82] - The company issued $2.9 billion in additional debt in November 2024 to fund acquisitions and general purposes, including various notes with interest rates ranging from 4.7% to 5.75%[184][186] - The company has a consolidated net leverage ratio requirement of no more than 3.75-to-1, and it was in compliance as of December 31, 2024[191] Acquisitions - The acquisition of Integrated Oncology Network (ION) was completed for a purchase price of $1.1 billion in cash[26] - The acquisition of a 73 percent ownership interest in GI Alliance (GIA) was completed for approximately $2.8 billion in cash[27] - Cardinal Health announced the acquisition of Advanced Diabetes Supply Group (ADSG) for approximately $1.1 billion in cash[28] - Specialty Networks was acquired for $1.2 billion in cash, contributing to the Pharma segment and creating value across multiple specialty group purchasing organizations[165] Segment Performance - Pharmaceutical and Specialty Solutions segment revenue decreased 4% to $50.8 billion for the three months ended December 31, 2024, and 5% to $98.8 billion for the six months ended December 31, 2024, primarily due to the expiration of OptumRx contracts[44] - Global Medical Products and Distribution segment revenue increased 1% to $3.2 billion for the three months ended December 31, 2024, and 2% to $6.3 billion for the six months ended December 31, 2024, driven by higher volumes from existing customers[45] - Total segment profit increased 9% to $667 million for the three months ended December 31, 2024, and 11% to $1.3 billion for the six months ended December 31, 2024, compared to the prior-year periods[53] Expenses and Costs - SG&A expenses increased 3% to $1.3 billion for the three months ended December 31, 2024, and 5% to $2.6 billion for the six months ended December 31, 2024, mainly due to the ION acquisition and higher costs to support sales growth[50] - Interest expense increased significantly to $35 million for the three months ended December 31, 2024, and $67 million for the six months ended December 31, 2024, primarily due to new debt financing[65] - Restructuring and employee severance costs for the three months ended December 31, 2024, amounted to $9 million, while amortization and other acquisition-related costs were $105 million[116] Tax and Goodwill - The effective tax rate for the three months ended December 31, 2024, was 21.4%, down from 27.9% in the same period of 2023[66] - A pre-tax goodwill impairment charge of $585 million was recognized during the six months ended December 31, 2023, with a net tax benefit of $45 million for fiscal 2024[68] - Goodwill increased to $5.488 billion as of December 31, 2024, primarily due to the acquisition of ION, reflecting expected growth and synergies[176] Litigation and Contingencies - The company accrued $4.9 billion related to opioid litigation settlements as of December 31, 2024, with expected payments continuing through 2038[85] - The company is involved in lawsuits related to the distribution of opioid pain medications, seeking equitable relief and monetary damages based on various legal theories[203] - Plaintiffs in opioid-related lawsuits include governmental entities, unions, healthcare providers, and private individuals[204] Market and Operational Risks - Cardinal Health is entering new lines of business, including physician practice support and management services, which involve various risks and uncertainties[126] - The company faces potential disruptions in global operations due to changes in U.S. or international trade policies, tariffs, and other economic factors[127] Financial Position - Total assets as of December 31, 2024, were $47,002 million, an increase from $45,121 million as of June 30, 2024[141] - Cardinal Health's total current liabilities decreased slightly to $35,223 million as of December 31, 2024, from $35,640 million as of June 30, 2024[141] - The balance of shareholders' deficit at December 31, 2024, was $(2,921) million, compared to $(3,547) million at December 31, 2023[143]

Revenue Performance - Second quarter fiscal year 2025 revenues were $55.3 billion, a decrease of 4% from the same period in fiscal year 2024, but a 16% increase when excluding the impact of a large customer contract expiration[2][5] - Revenue for Q2 2025 was $55,264 million, a decrease of 4% compared to $57,442 million in Q2 2024[23] - Revenue for the Pharmaceutical and Specialty segment decreased by 4% to $50,849 million in Q2 2025, while the Global Medical Products and Solutions segment grew by 12% to $3,154 million[30] - Total revenue excluding OptumRx for Q2 2025 was $55.3 million, a 16% increase from $47.6 million in Q2 2024[42] - Year-to-date total revenue excluding OptumRx for 2025 was $107.5 million, a 16% increase from $93.0 million in 2024[44] Earnings and Profitability - GAAP operating earnings increased by 9% to $549 million, while GAAP diluted earnings per share (EPS) rose by 10% to $1.65[4][5] - Non-GAAP operating earnings also increased by 9% to $635 million, driven primarily by the Pharmaceutical and Specialty Solutions segment, with non-GAAP diluted EPS increasing by 2% to $1.93[4][5] - Segment profit for Pharmaceutical and Specialty Solutions increased by 7% to $531 million, supported by growth in BioPharma Solutions and brand products[7] - The Global Medical Products and Distribution segment saw a revenue increase of 1% to $3.2 billion, with segment profit rising to $18 million due to cost optimization initiatives[8][9] - Other segment revenue increased by 13% to $1.3 billion, with segment profit rising by 11% to $118 million, driven by growth in at-Home Solutions and Nuclear and Precision Health Solutions[9][10] - Net earnings attributable to Cardinal Health, Inc. increased by 9% to $400 million in Q2 2025 from $368 million in Q2 2024[23] - Basic earnings per share increased by 10% to $1.65 in Q2 2025, compared to $1.50 in Q2 2024[23] Guidance and Future Outlook - The fiscal year 2025 non-GAAP EPS guidance was raised to a range of $7.85 to $8.00, up from the previous range of $7.75 to $7.90[5][11] - Fiscal year 2025 guidance for Pharmaceutical and Specialty Solutions segment profit was updated to 10% to 12% growth, up from 4% to 6% growth, reflecting stronger organic growth and contributions from recent acquisitions[12] Assets and Cash Flow - Total current assets increased to $35,756 million as of December 31, 2024, up from $34,884 million as of June 30, 2024[26] - Total assets rose to $47,002 million as of December 31, 2024, compared to $45,121 million as of June 30, 2024[26] - Cash and equivalents at the end of the period were $3,810 million, a decrease from $4,597 million at the end of Q2 2024[28] - The company reported a net cash used in operating activities of $(400) million for Q2 2025, compared to $1,179 million in Q2 2024[39] - Non-GAAP adjusted free cash flow for Q2 2025 was $(254) million, compared to $1,038 million in Q2 2024[39] Acquisitions and Strategic Initiatives - The company completed its acquisition of a 73% stake in GI Alliance, enhancing its multi-specialty growth strategy, and also acquired Integrated Oncology Network to support its Navista oncology platform[3][17] Impairments and Charges - The company reported a goodwill impairment charge of $585 million related to the GMPD segment for the six months ended December 31, 2023[23] - The company incurred $179 million in amortization and other acquisition-related costs in the year-to-date 2025[37] Non-GAAP Metrics and Adjustments - Non-GAAP operating earnings exclude several items, including LIFO charges, state opioid assessments, and restructuring costs, to reflect ongoing business operations[55] - Non-GAAP adjusted free cash flow is provided as a supplemental metric to indicate cash flow available for working capital needs, debt repayments, and strategic acquisitions[50] - Non-GAAP gross margin excludes LIFO charges, providing a clearer view of operational performance[54] - Non-GAAP net earnings attributable to Cardinal Health exclude various non-recurring items, enhancing the clarity of financial performance[57] - The tax effect for excluded items is determined using applicable tax rates, impacting the overall financial results[49] - Non-GAAP effective tax rate adjusts for the tax impacts of several excluded items, providing a more accurate measure of tax efficiency[58] Other Financial Metrics - Gross margin increased by 5% to $1,941 million in Q2 2025 from $1,854 million in Q2 2024[23] - Year-to-date GAAP total revenue for 2025 was $3,843 million, a 7% increase from $3,597 million in 2024[37] - The effective tax rate for Q2 2025 was 21.4%, consistent with the rate in Q2 2024[34] - The company did not recognize any LIFO charges or credits during the periods presented, facilitating comparison of current financial results to historical results[48] - Over the past five fiscal years, excluded items have impacted the company's EPS from $3.49 to $18.06, including a $17.54 charge related to opioid litigation recognized in fiscal 2020[52]

Core Insights - Cardinal Health reported second quarter fiscal year 2025 revenues of $55.3 billion, a decrease of 4% from the same period in fiscal year 2024, but a 16% increase when excluding the impact of a large customer contract expiration [1][14] - GAAP operating earnings increased by 9% to $549 million, with GAAP diluted earnings per share (EPS) at $1.65, reflecting a 10% increase from $1.50 in the prior year [1][26] - The company raised its fiscal 2025 guidance for non-GAAP diluted EPS to a range of $7.85 to $8.00, up from $7.75 to $7.90, indicating confidence in future performance [10][14] Financial Performance - Total revenue for Q2 FY25 was $55.3 billion, down from $57.4 billion in Q2 FY24, marking a 4% decline [3] - Non-GAAP operating earnings rose by 9% to $635 million, driven primarily by the Pharmaceutical and Specialty Solutions segment [1][3] - Non-GAAP diluted EPS increased by 2% to $1.93, supported by a lower share count and increased operating earnings [1][3] Segment Performance - The Pharmaceutical and Specialty Solutions segment reported revenues of $50.8 billion, a 4% decrease from $53.2 billion in Q2 FY24, but a 17% increase when excluding the impact of the customer contract expiration [4][5] - Segment profit for Pharmaceutical and Specialty Solutions increased by 7% to $531 million, driven by growth in BioPharma Solutions and brand products [5] - The Global Medical Products and Distribution segment saw a 1% revenue increase to $3.2 billion, with segment profit rising to $18 million due to cost optimization initiatives [6][7] Strategic Developments - Cardinal Health completed its acquisition of a majority stake in GI Alliance, enhancing its specialty growth strategy and expanding its service offerings [2][13] - The company also finalized its acquisition of Integrated Oncology Network, which supports its Navista oncology platform [2][25] - Cardinal Health announced the start of routine production of actinium-225, increasing access to new cancer therapies [25] Fiscal Year 2025 Outlook - The company updated its guidance for the Pharmaceutical and Specialty Solutions segment profit growth to 10% to 12%, up from a previous estimate of 4% to 6% [11] - Guidance for the Global Medical Products and Distribution segment profit was adjusted to a range of $130 million to $150 million, down from $140 million to $175 million [11] - Expectations for interest and other expenses were revised to a range of $200 million to $230 million, reflecting new debt financing impacts [12]

Core Viewpoint - Cardinal Health, Inc. is set to report its fiscal second-quarter 2025 results on January 30, with expectations of a decline in earnings and revenues compared to the previous year, despite a history of earnings surprises in recent quarters [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for earnings in the fiscal second quarter is $1.74 per share, reflecting a 4.4% decline from the prior year's figure [2]. - Revenue estimates for the same quarter are pegged at $54.97 billion, indicating a 4.3% year-over-year decline [2]. Group 2: Segment Performance - Cardinal Health began reporting results under new operating segments from the fiscal third quarter of 2024, which include Pharmaceutical and Specialty solutions, Global Medical Products and Distribution (GMPD), nuclear at-home, and OptiFreight [3]. - In the first quarter of fiscal 2025, Pharmaceutical revenues decreased by 5% year over year to $48 billion, primarily due to a contract expiration with OptumRx. Excluding this impact, sales rose by 16% year over year [4]. - The GMPD segment reported revenues of $3.1 billion, up 3% year over year, but profits decreased from $12 million to $8 million due to higher costs [6]. Group 3: Strategic Initiatives - In November 2024, Cardinal Health announced two strategic acquisitions: a majority stake in GI Alliance for approximately $2.8 billion and the Advanced Diabetes Supply Group for about $1.1 billion, aimed at enhancing specialty and at-home care services [8]. - The company opened a new 350,000-square-foot warehouse in South Carolina, which is expected to improve operational efficiency and drive growth [9]. Group 4: Earnings Prediction - The company's earnings prediction model indicates a potential earnings beat, supported by a positive Earnings ESP of +0.42% and a Zacks Rank of 2 [11][12].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for Cardinal Health in the upcoming earnings report, with a focus on how actual results compare to estimates [1][3]. Earnings Expectations - Cardinal Health is expected to report quarterly earnings of $1.74 per share, reflecting a year-over-year decrease of 4.4% [3]. - Revenues are projected to be $54.84 billion, down 4.5% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Cardinal is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.42%, suggesting a bullish outlook from analysts [10]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Cardinal Health currently holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Cardinal Health exceeded expectations by delivering earnings of $1.88 per share against an expected $1.64, resulting in a surprise of +14.63% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - While Cardinal Health appears to be a strong candidate for an earnings beat, other factors may also influence stock movement post-earnings release [14][16].

Shares of Cardinal Health (CAH) have been strong performers lately, with the stock up 8.6% over the past month. The stock hit a new 52-week high of $127.08 in the previous session. Cardinal Health has gained 7.4% since the start of the year compared to the -3.8% move for the Zacks Medical sector and the 5.1% return for the Zacks Medical - Dental Supplies industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimat ...

Cardinal Health (CAH) recently announced the ongoing construction of a new distribution center in Fort Worth, TX, to support its at-Home Solutions business.Similar to the distribution centers recently launched in South Carolina and Ohio, this new facility incorporates advanced robotics and automation technology. These innovations enhance efficiency by supporting employees in tasks such as picking, packing, and shipping while also improving speed and workplace safety.Likely Trend of CAH Stock Following the N ...

Key Takeaways Industry and Company Overview 1. **Company**: Cardinal Health, Inc. (NYSE:CAH) 2. **Event**: J.P. Morgan Healthcare Conference 3. **Date**: January 14, 2025 4. **Participants**: - Aaron Alt - CFO - Jason Hollar - CEO - Lisa Gill - JPMorgan [1] Core Views and Arguments 1. **Bullish on Healthcare Industry**: Cardinal Health is highly optimistic about the healthcare industry, particularly within their niche and the secular trends that uniquely benefit them. 2. **Positive Guidance Update**: The company issued an 8-K with a positive update to their guidance, which CEO Jason Hollar will discuss further. 3. **Earnings Release**: Cardinal Health is scheduled to release earnings on January 30, 2025, at which time they will provide further updates on their business. 4. **Forward-Looking Statements**: Both Aaron Alt and Jason Hollar will be making forward-looking statements during the call, with references to their SEC filings for a full list of risks and opportunities. [2][3][4]

New facility will be outfitted with latest robotics and automation technologies DUBLIN, Ohio, Jan. 14, 2025 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced construction is underway on a new distribution center in Fort Worth, Texas, which will support its at-Home Solutions business, a leading medical supplies provider that serves more than 5 million patients annually in the United States. The new 340,000 square foot distribution center will consolidate its two existing warehouses into one larger facili ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Cardinal Health (CAH) . This company, which is in the Zacks Medical - Dental Supplies industry, shows potential for another earnings beat.This prescription drug distributor has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters w ...