Skip to main content

Market Overview

Cardinal Health Stock Tumbles After Q3 Earnings Fall Short Of Expectations; Narrowed FY21 Adjusted EPS Guidance

Share:
Cardinal Health Stock Tumbles After Q3 Earnings Fall Short Of Expectations; Narrowed FY21 Adjusted EPS Guidance
  • Cardinal Health (NYSE: CAHreported the third-quarter FY21 adjusted EPS of $1.53, which missed the consensus estimate of $1.55. The earnings dropped 6% Y/Y, reflecting a higher non-GAAP effective tax rate.
  • GAAP EPS decreased to $0.40 from $1.19 in the last year due to the previously disclosed tax effect of the litigation charge.
  • Sales of $39.30 billion lagged the consensus of $40.09 billion but did not change much from a year ago.
  • Revenue for the Pharmaceutical segment was flat Y/Y at $35.1 billion, but profit decreased 4% to $511 million primarily due to COVID-19-related volume declines in the company's generics program.
  • Medical segment sales increased 3% to $4.2 billion, driven by a net positive impact from COVID-19 on products and distribution led by personal protective equipment (PPE) sales and higher volumes in Lab business, partially offset by the adverse effects of reduced elective procedures.
  • Adjusted operating earnings decreased 4% Y/Y to $689 million due to the negative impact from COVID-19, primarily concentrated in the Pharmaceutical segment.
  • GAAP operating earnings decreased 16% Y/Y to $473 million, primarily due to the write-down of the net assets held for sale from the planned divestiture of the Cordis business.
  • Guidance: Cardinal Health narrowed its FY21 EPS guidance range to $5.90 to $6.05, from $5.85 to $6.10 prior.
  • It raised the quarterly dividend by 1% to $0.4908 per share or $1.96 annually. The dividend will be payable on July 15 of the record date of July 1.
  • Price Action: CAH shares are down 10.3% at $54.57 on the last check Thursday.
 

Related Articles (CAH)

View Comments and Join the Discussion!

Posted-In: BriefsEarnings News Guidance Dividends Health Care General

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com