Cardinal Health (NYSE: CAH) has reported its fourth-quarter and fiscal year 2024 results, showcasing a robust performance that has exceeded expectations in several key areas.With a 12% increase in fourth-quarter revenue to $59.9 billion, the company has demonstrated strong operational execution across its business segments. GAAP operating earnings for the quarter stood at $401 million, with GAAP diluted earnings per share (EPS) at $0.96.On a non-GAAP basis, the company reported a 14% increase in operating earnings to $605 million, and non-GAAP diluted EPS surged by 29% to $1.84. This growth was driven by significant contributions from the Global Medical Products and Distribution (GMPD) and Pharmaceutical and Specialty Solutions segments.For the full fiscal year 2024, Cardinal Health reported revenues of $226.8 billion, marking an 11% increase from the previous year. GAAP operating earnings for the year were $1.2 billion, while GAAP diluted EPS reached $3.45. Non-GAAP operating earnings saw a 16% rise to $2.4 billion, and non-GAAP diluted EPS increased by 29% to $7.53.The company attributed this performance to continued profit growth in the Pharmaceutical and Specialty Solutions segment and improvements driven by the GMPD Improvement Plan. Additionally, Cardinal Health achieved record highs in operating cash flow and adjusted free cash flow, which reached $3.8 billion and $3.9 billion, respectively.
Cardinal Health Beats EPS and Revenue Expectations in Fiscal Q4Comparing the current performance against expectations, Cardinal Health has outperformed the market’s forecasts. Analysts had anticipated an EPS of $1.73 and revenue of $58.64 billion for the quarter.However, the company reported a non-GAAP diluted EPS of $1.84 and revenue of $59.9 billion, surpassing both estimates. This marks a significant achievement, reflecting the company’s ability to deliver beyond market expectations. The 29% increase in non-GAAP diluted EPS from the prior year’s fourth quarter is particularly noteworthy, indicating strong profitability and effective cost management.The Pharmaceutical and Specialty Solutions segment was a major contributor to this success, with a 13% increase in fourth-quarter revenue to $55.6 billion. Segment profit for this division rose by 8% to $482 million, driven by brand and specialty pharmaceutical sales growth from existing customers.Similarly, the Global Medical Products and Distribution segment saw a 2% increase in revenue to $3.1 billion and a significant profit increase of $40 million to $47 million. This was attributed to improvements in net inflationary impacts and mitigation initiatives.
Cardinal Health Raises Full Year Guidance, Expects EPS Between $7.55 to $7.70Cardinal Health has raised its fiscal year 2025 guidance, reflecting confidence in continued growth and operational efficiency. The company now expects non-GAAP diluted EPS to be in the range of $7.55 to $7.70, up from the previously communicated expectation of at least $7.50.This upward revision is supported by an updated outlook for the Pharmaceutical and Specialty Solutions segment, which is now anticipated to see 1% to 3% profit growth. The Global Medical Products and Distribution segment is expected to achieve approximately $175 million in segment profit, with revenue growth projected between 3% to 5%.In addition to these financial projections, Cardinal Health has outlined its strategic initiatives for fiscal year 2025. The company plans to increase its share repurchase program by $250 million, bringing the total to $750 million. This move underscores Cardinal Health’s commitment to maximizing shareholder value through disciplined capital allocation.The company also aims to generate at least $500 million in near-term value from its GMPD segment by fiscal year 2026 through further simplification actions and working capital improvements. This strategic focus is expected to drive sustained profitability and operational excellence.More By This Author:Top 3 Defensive Dividend Stocks In August 2024
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