- Cardinal Health reported an adjusted EPS of $1.93 for Q2, surpassing both last year’s $1.82 and the estimated $1.77.
- Adjusted operating income reached $635 million, a 13% increase year-over-year (y/y), exceeding the estimated $613.6 million.
- Revenue was $55.26 billion, which is a 3.8% decline compared to the previous year, but still beat estimates of $54.95 billion.
- The Pharmaceutical and Healthcare Products segment generated $50.85 billion in revenue, narrowly surpassing the estimated $50.83 billion.
- Global Medical Products and Distribution revenue came in at $3.15 billion, below two estimates of $3.62 billion.
- There was a negative cash flow from operating activities of $400 million, contrasting with a positive $1.19 billion from last year.
- The company raised its forecast for the fiscal year 2025, projecting an adjusted EPS between $7.85 and $8.00, up from a previous range of $7.75 to $7.90, aligning closely with the estimate of $7.87.
- Cardinal Health attributes its positive outlook to strong demand in the Pharmaceutical and Specialty Solutions segment.
- Current analyst ratings include 12 buys, 5 holds, and 1 sell.
Cardinal Health on Smartkarma
Analysts on Smartkarma like Value Investors Club and Baptista Research are providing positive coverage of Cardinal Health. Value Investors Club‘s report highlights strong performance under CEO Jason Hollar, with double-digit EPS growth, share repurchases, and ambitious three-year growth targets despite challenges like generic price fluctuations. On the other hand, Baptista Research‘s insights focus on Cardinal Health‘s strategic acquisitions and improving market position, leading to strong financial and operational results in the first quarter of fiscal year 2025, particularly in the Pharmaceutical and Specialty Solutions segment.
Baptista Research also notes Cardinal Health‘s remarkable year with substantial growth in earnings per share (EPS) and key financial metrics, indicating a positive trajectory well exceeding initial guidance. Both research reports provide a bullish outlook on Cardinal Health‘s performance and strategic initiatives for sustained growth and profitability in the healthcare distribution industry.
A look at Cardinal Health Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Cardinal Health, Inc. is well-positioned for long-term growth, with Smartkarma Smart Scores reflecting a positive outlook across multiple key factors. The company scores high in Growth, Resilience, and Momentum, indicating strong potential for expansion, stability, and market performance. With a focus on providing essential healthcare products and services to providers and manufacturers, Cardinal Health‘s diverse offerings, including pharmaceutical distribution, healthcare product manufacturing, and drug delivery systems development, position it as a reliable player in the industry.
Furthermore, Cardinal Health‘s solid Dividend score underscores its commitment to providing returns to investors. The company’s robust performance in these areas aligns with its core mission to enhance the delivery of healthcare services. With a strong foundation and a track record of success in the healthcare sector, Cardinal Health is poised to continue its positive trajectory for the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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