Cardinal Health(CAH)2025-01-30 11:51Revenue Performance - Second quarter fiscal year 2025 revenues were 55,264 million, a decrease of 4% compared to 50,849 million in Q2 2025, while the Global Medical Products and Solutions segment grew by 12% to 55.3 million, a 16% increase from 107.5 million, a 16% increase from 549 million, while GAAP diluted earnings per share (EPS) rose by 10% to 635 million, driven primarily by the Pharmaceutical and Specialty Solutions segment, with non-GAAP diluted EPS increasing by 2% 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 18 million due to cost optimization initiatives[8][9] - Other segment revenue increased by 13% 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 368 million in Q2 2024[23] - Basic earnings per share increased by 10% 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 8.00, up from the previous range of 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 34,884 million as of June 30, 2024[26] - Total assets rose to 45,121 million as of June 30, 2024[26] - Cash and equivalents at the end of the period were 4,597 million at the end of Q2 2024[28] - The company reported a net cash used in operating activities of 1,179 million in Q2 2024[39] - Non-GAAP adjusted free cash flow for Q2 2025 was 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 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 1,854 million in Q2 2024[23] - Year-to-date GAAP total revenue for 2025 was 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 18.06, including a $17.54 charge related to opioid litigation recognized in fiscal 2020[52]