Cardinal Health (CAH) Beats on Q4 Earnings, Ups '24 EPS View

Core Viewpoint - Cardinal Health, Inc. reported strong fourth-quarter fiscal 2024 results, with adjusted earnings per share (EPS) of $1.84, exceeding estimates and showing a 29% year-over-year improvement [1]. Revenue Details - The company achieved sales of $59.9 billion, reflecting a 12% year-over-year increase and surpassing consensus estimates by 2% [2]. Segmental Analysis - Pharmaceutical and Specialty Solutions Segment: Revenues increased by 13% to $55.6 billion, driven by branded pharmaceutical sales growth. Profit in this segment rose 8% to $482 million [3]. - Global Medical Products and Distribution Segment: Revenues totaled $3.1 billion, up 2% year over year, with profits increasing to $47 million from $7 million in the prior year [3]. - Other Segment: This segment reported sales of $1.2 billion, a 15% increase year over year, with profits rising 11% to $111 million, primarily due to strong performance in OptiFreight Logistics [4]. Margin Analysis - Gross profit increased by 5% year over year to $1.88 billion, with a gross margin of 3.1%, down 20 basis points from the previous year. Operating income rose significantly to $401 million from $111 million in the prior year [5]. Financial Update - The company ended the quarter with cash and cash equivalents of $5.13 billion, up from $3.72 billion in the previous quarter. Cumulative net cash from operating activities was $2.08 billion, compared to $871 million in the year-ago period [6]. 2025 Guidance Update - Cardinal Health raised its fiscal 2025 adjusted EPS guidance to between $7.55 and $7.70, up from at least $7.50. The company anticipates a 4-6% decline in Pharmaceutical segment revenues due to the OptumRx contract expiration, while Medical segment revenues are expected to grow 3-5% [7]. Conclusion - The company exited the fiscal fourth quarter positively, with earnings and revenues exceeding estimates, and experienced year-over-year growth across all sectors. Shares rose 6.2% in pre-market trading following the results [8].