The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Cardinal Health missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Margins increased across the board.
Cardinal Health logged revenue of $25.89 billion. The 12 analysts polled by S&P Capital IQ predicted revenue of $26.35 billion on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $26.79 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.81. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.80 per share. GAAP EPS of $0.79 for Q1 were 14% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 4.5%, 50 basis points better than the prior-year quarter. Operating margin was 1.8%, 20 basis points better than the prior-year quarter. Net margin was 1.0%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24.67 billion. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $99.68 billion. The average EPS estimate is $3.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 441 members out of 483 rating the stock outperform, and 42 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Cardinal Health a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cardinal Health is outperform, with an average price target of $46.23.
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