Cardinal Health reported fiscal Q1 non-GAAP EPS of $2.55, up 36% year over year and exceeding the $2.21 consensus, and revenue of $64.0 billion, up 22% year over year. Pharmaceutical and Specialty Solutions grew 23% to $59.2 billion and accounted for 92% of sales, while Global Medical Products rose 2% and the Other segment jumped 38%. Non-GAAP operating earnings rose 37% to $857 million and GAAP operating earnings increased 18% to $668 million, indicating margin expansion. Operating cash flow totaled $973 million and net income was $450 million. Full-year non-GAAP EPS guidance was raised to $9.65–$9.85 and free cash flow guidance to $3.0–$3.5 billion.
"What matters here is that the beat wasn't driven by a single segment or accounting trick. Pharmaceutical and Specialty Solutions, the company's largest division, grew 23% year over year to $59.2B. That segment alone accounts for 92% of revenue, and it's firing on all cylinders. Brand and specialty pharmaceutical sales accelerated, while the generics program performed better than expected. Global Medical Products grew more modestly at 2%, but the Other segment surged 38%, suggesting diversification is working."
"Non-GAAP earnings per share came in at $2.55, crushing the $2.21 consensus by 16%. Revenue hit $64.0B, topping estimates of $59.79B by 7%. Operating earnings growth outpaced revenue growth. Non-GAAP operating earnings rose 37% to $857M, while GAAP operating earnings climbed 18% to $668M. That margin expansion is the real signal here. It tells you the company isn't just moving more volume. It's extracting better economics from each transaction."
Read at 24/7 Wall St.
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