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Cardinal Health's Fiscal Second-Quarter Earnings Jump as Revised 2021 Outlook Tops Most Analyst Estimates

· 02/05/2021 04:39

09:26 AM EST, 02/05/2021 (MT Newswires) -- Cardinal Health (CAH) on Friday reported a 14% jump in its fiscal second-quarter adjusted earnings, fueled in part by a tax-rate adjustment, and issued a revised fiscal 2021 outlook that topped most Wall Street estimates.

The healthcare products and drug distribution company posted an adjusted profit of $1.74 a diluted share, compared with $1.52 a share for the same period in 2019. The 2020 quarter was boosted by a lower tax rate, the company said. Revenue for the quarter rose to $41.5 billion, up 5% from a year ago. A poll of analysts by Capital IQ estimated Cardinal would report adjusted EPS of $1.45 and revenue of $41.4 billion.

"Our second-quarter results demonstrate our resilient business model, strong fundamentals, and the adaptability of our dedicated employees," Chief Executive Mike Kaufmann said in a statement. "We remain focused on optimizing our core businesses, investing in key areas, and efficiently deploying capital to drive long-term, sustainable growth."

The Dublin, Ohio-based company's core pharmaceuticals division saw sales increase 4% to $37.2 billion, while sales from its medical products division climbed 7% to $4.3 billion for the quarter.

Cardinal said its pharmaceutical business saw a negative impact from the COVID-19 pandemic, with profit down 11% to $413 million, stemming from volume declines due to the outbreak. The medical segment saw higher sales of personal protective equipment and increased volumes in the lab business.

Cardinal also boosted its fiscal 2021 financial outlook. The company now sees reporting adjusted earnings per share of between $5.85 to $6.10, up from its previous guidance of $5.65 to $5.95 a share. Analysts polled by Capital IQ estimated that Cardinal will post 2021 adjusted EPS of $5.90.

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