Cardinal Health's Revenue Climbs, Driven by Pharmaceuticals Segment
April 28 2016 - 8:30AM
Dow Jones News
Cardinal Health Inc. reported double-digit revenue growth in its
latest quarter, driven by its pharmaceuticals segment, as the
company beat analysts' expectations.
Still, the company narrowed its earnings forecast for the year,
decreasing the midpoint of its range. It now expects adjusted
per-share profit of between $5.17 and $5.27, compared with its
range of $5.15 to $5.35 previously. Analysts had expected adjusted
profit for the year of $5.28 a share.
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.
In the latest quarter, pharmaceutical-segment revenue climbed
22% to $27.5 billion, while medical-segment revenue grew 13% to
$3.1 billion.
For the period ended March 31, Cardinal Health reported a profit
of $386 million, or $1.17 a share, up from $365 million, or $1.09 a
share, a year earlier. Excluding acquisition-related costs and
other items, per-share earnings rose to $1.43 from $1.19. Revenue
increased 21% to $30.7 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.32 and revenue of $30.39 billion.
Shares of Cardinal Health, which have increased 9.5% in the past
three months, were inactive premarket.
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.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 28, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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