Drug distributor Cardinal Health tops fourth-quarter profit estimate, raises 2025 outlook, boosts share buyback expectations by $250 million
Cardinal Health Inc. (NYSE: CAH ) on Wednesday reported fourth-quarter 2024 adjusted EPS of $1.84, up 29% year over year and beating the consensus estimate of $1.73.
Cardinal Health is a distributor of pharmaceuticals, a manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions to healthcare facilities.
Sales rose 12% to $59.87 billion, beating market expectations of $58.64 billion.
Pharmaceuticals revenues increased 12 percent to $55.6 billion, driven by increased sales of branded and specialty pharmaceuticals from existing customers.
Related article: Drug distributor Cardinal Health does not renew distribution contract with OptumRx, sending shares plummeting.
Medical segment revenues increased 2% to $3.1 billion, driven by increased sales from existing customers.
Cardinal Health reiterated its profit target for its Global Medical Products and Distribution (GMPD) division of approximately $300 million for fiscal 2026.
Additionally, the company is targeting near-term value creation of at least $500 million from GMPD through further simplification measures and working capital improvements by fiscal 2026, with the cash to be allocated in accordance with a disciplined capital allocation framework.
As a result, the company plans to raise its share repurchase forecast for fiscal 2025 by $250 million to $750 million.
Outlook: Cardinal Health raised its fiscal 2025 adjusted EPS guidance to $7.55-$7.70 from a preliminary outlook of at least $7.50, beating the consensus estimate of $7.53.
The company updated its pharmaceutical and specialty solutions division profit growth outlook from at least 1% to growth of 1% to 3%.
In its Global Medical Products and Distribution segment, the company expects revenue to grow 3% to 5%. Overall revenue is expected to grow 10% to 12%.
“We enter the new fiscal year with momentum and confidence, as evidenced by our increased fiscal 2025 guidance,” Cardinal Health CEO Jason Holler said.
Price Action: At last check on Wednesday, CAH shares were up 5.14% at $107.85 in pre-market trading.
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Photo courtesy of the company
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This article Drug distribution giant Cardinal Health raises 2025 guidance after beating fourth-quarter profit estimates and raising share repurchase expectations by $250 million originally appeared on Benzinga.com.
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