The 10-second takeaway
For the quarter ended March 31 (Q3), Cardinal Health met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Margins grew across the board.
Cardinal Health logged revenue of $24.55 billion. The 13 analysts polled by S&P Capital IQ hoped for sales of $24.72 billion on the same basis. GAAP reported sales were 8.8% lower than the prior-year quarter's $26.92 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 $1.20. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.95 per share. Non-GAAP EPS of $1.20 for Q3 were 28% higher than the prior-year quarter's $0.94 per share. GAAP EPS of $1.00 for Q3 were 5.3% higher than the prior-year quarter's $0.95 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 5.3%, 80 basis points better than the prior-year quarter. Operating margin was 2.2%, 30 basis points better than the prior-year quarter. Net margin was 1.4%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $24.66 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $100.20 billion. The average EPS estimate is $3.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 446 members out of 488 rating the stock outperform, and 42 members rating it underperform. Among 165 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Cardinal Health a green thumbs-up, and 11 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 $47.62.
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