Cardinal Health beats Q1 revenue, adjusted EPS estimates, raises outlook

Cardinal Health

Thu 11:53

Overview
US pharmaceutical distributor's fiscal Q1 revenue rose 5%, beating analyst expectations
Adjusted EPS for fiscal Q1 rose 28%, beating analyst expectations
Company raised fiscal 2027 non-GAAP EPS guidance

Outlook
Cardinal Health raises FY27 non-GAAP EPS guidance to $12.80-$13.00, from $12.40-$12.60
Company now expects Pharmaceutical and Specialty Solutions profit growth of 10%-12%, up from 8%-11%
Company lowers FY27 non-GAAP effective tax rate outlook to 18.5%-19.5%, from 19.0%-20.0%

Result Drivers
PHARMACEUTICAL SALES - Revenue growth in Pharmaceutical and Specialty Solutions segment was driven by increased brand and specialty pharmaceutical sales from existing customers
GENERIC PROGRAM PERFORMANCE - Pharmaceutical and Specialty Solutions segment profit rose 17%, primarily due to contributions from brand and specialty products and positive generics program performance
LOWER TAX RATE AND SHARE COUNT - Adjusted EPS increase reflected higher non-GAAP operating earnings, a lower share count, and a lower effective tax rate

Company press release: ID:nPn2W46MJa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$67.50 bln
$66.59 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$3.26
$2.94 (15 Analysts)
Q1 EPS
 
$2.38
 
Q1 Net Income
 
$554 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Cardinal Health, Inc. is $280.00, about 6.9% above its November 4 closing price of $261.93
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
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Nov 4 - CVS beats Q3 revenue, profit estimates, outlook raised; to split into two
Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)