Cardinal Health (CAH 0.39%), a global, integrated healthcare services and products company, released its third-quarter fiscal 2024 earnings on May 2. The company exceeded analysts' earnings per share (EPS) expectations but reported revenue that failed to meet forecasts. Nonetheless, the firm displayed strong year-on-year growth, emphasizing its robust market position and operational efficiency.
| Metric | Q3 FY24 Actual | Q3 FY24 Estimates | Q3 FY23 Actual | Change (YOY) |
|---|---|---|---|---|
| Revenue | $54.9 billion | $58.96 billion | $50.5 billion | 9% |
| Non-GAAP diluted EPS | $2.08 | $1.80 | $1.74 | 20% |
| Operating earnings | $367 million | N/A | $572 million | (36%) |
| Non-GAAP operating earnings | $666 million | N/A | $606 million | 10% |
| Net earnings attributable to Cardinal Health | $258 million | N/A | $345 million | (25%) |
Data source: Company results from company. Analyst estimates from FactSet.
Company overview
Cardinal Health operates in the forefront of the healthcare supply chain, providing pharmaceutical and medical products to customers in more than 30 countries. It facilitates the smooth delivery of healthcare services and products worldwide.
Recent focuses for the business include enhancing supply chain efficiency, bolstering customer and supplier relationships, and navigating the complex regulatory landscape. Success for Cardinal Health hinges on its ability to manage these dynamics effectively while maintaining strong financial health and seeking growth opportunities.
Quarterly highlights
During the just-reported quarter, Cardinal Health reported notable achievements, including:
- The pharmaceutical and specialty solutions segment demonstrated robust growth, contributing significantly to the company's revenue.
- The company also made strategic strides in its business by acquiring Specialty Networks.
Looking forward
Looking ahead, Cardinal Health has raised and narrowed its fiscal year 2024 non-GAAP diluted EPS guidance to $7.30 to $7.40. This compares to the previous estimate of $7.20 to $7.35. The company also gave preliminary fiscal year 2025 non-GAAP EPS guidance of at least $7.50.
Investors should closely monitor the company's execution of strategic initiatives, including its integration of recent acquisitions and efforts to expand its specialty solutions offerings. Furthermore, Cardinal Health's ability to navigate supply chain challenges will be crucial for its continuing success.
