Cardinal Health Inc. said its earnings rose 26% on sales growth
led by its drug-distribution segment during the quarter ended in
June.
The Dublin, Ohio-based company also raised the lower end of its
per-share earnings outlook by a dime for its recently started
fiscal year. Cardinal now expects per-share profit from continuing
operations in a range of $4.85 to $5.05.
Cardinal, a drug wholesaler that also makes gloves and surgical
apparel, is working to expand its portfolio of medical products as
hospitals merge and consolidate. Earlier this month, Cardinal
completed its roughly $1.12 billion acquisition of Harvard Drug
Group, a deal that broadens its offerings of generic and
over-the-counter medications.
Cardinal also is in the process of acquiring the Cordis
heart-product business of Johnson & Johnson for roughly $1.94
billion. The deal will add stents and catheters to the list of
products Cardinal offers.
For the latest quarter, Cardinal reported a profit of $295
million, or 88 cents a share, up from $234 million, or 68 cents a
share, a year earlier. Excluding acquisition-related costs,
restructuring-related charges, a litigation recovery and other
items, per-share earnings rose to $1 from 83 cents. Revenue jumped
20% to $27.5 billion.
Analysts polled by Thomson Reuters expected per-share profit of
99 cents and revenue of $26.05 billion.
Medical-segment revenue increased 2% to $2.9 billion, while the
pharmaceutical segment revenue grew 23% to $24.7 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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