Cardinal Health Revenue Rises 23%
February 01 2016 - 08:50AM
Dow Jones News
Cardinal Health Inc. reported 23% revenue growth in its latest
quarter, driven by its pharmaceutical segment, as the company's top
and bottom lines beat analysts' expectations.
Cardinal, a drug wholesaler that also makes gloves and surgical
apparel, is working to expand its portfolio of medical products as
hospitals merge. It provides resources to more than three-quarters
of U.S. hospitals.
The Dublin, Ohio, company completed a $1.94 billion acquisition
of the Cordis heart-product business from Johnson & Johnson in
October, adding stents and catheters to the list of products
Cardinal offers. In July, Cardinal bought Harvard Drug Group for
roughly $1.12 billion, a deal that broadens its offerings of
generic and over-the-counter medications.
In the latest quarter, pharmaceutical segment revenue climbed
25% to $28.29 billion, while medical segment revenue grew 8.5% to
$3.16 billion.
For the period ended Dec. 31, Cardinal Health reported a profit
of $326 million, or 98 cents a share, up from $289 million, or 86
cents a share, a year earlier. Excluding acquisition-related costs
and other items, per-share earnings rose to $1.30 from $1.20.
Revenue increased 23% to $31.45 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.26 and revenue of $29.23 billion.
The company reaffirmed its earnings forecast for the year,
saying it expects per-share profit of between $5.15 and $5.35.
Shares of Cardinal Health, which have declined 8.9% in the past
month, were inactive premarket.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 01, 2016 08:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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