Cardinal Health stock jumps toward 5-year high after big profit and revenue beats, affirmed outlook

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Shares of Cardinal Health Inc. CAH, +5.09% jumped 4.4% toward a five-year high in premarket trading Friday, after the drug and laboratory products distributor reported fiscal first-quarter profit and revenue that beat expectations, as strength in generics and branded pharmaceuticals helped offset inflationary supply chain costs. Net income for the quarter to Sept. 30 fell to $110 million, or 40 cents a share, from $271 million, or 94 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share fell 7% to $1.20, due to a decline in medical segment profit, but was well above the FactSet consensus of 94 cents. Revenue grew 12.8% to $49.60 billion, above the FactSet consensus of $48.19 billion, as pharmaceutical revenue rose 15.1% to $45.8 billion and medical revenue fell 7.3% to $3.8 billion. The pharmaceutical segment profit rose 6% to $431 million, while the medical segment swung to a loss of $8 million from profit of $123 million. For fiscal 2023, the company affirmed its adjusted EPS guidance range of $5.05 to $5.40, which surrounds the FactSet consensus of $5.22. The stock, which is on track to open at the highest price seen since June 2017, has run up 25.6% over the past three months through Thursday, while the S&P 500 SPX, +1.36% has dropped 10.4%.

This article was originally published by Marketwatch.com. Read the original article here.

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