Cardinal Health Inc (CAH) delivered a strong performance in its fourth quarter, exceeding analysts’ expectations and providing optimistic guidance for the future. The company reported adjusted earnings per share (EPS) of $1.84 for the quarter, a significant 29% year-over-year increase, surpassing the consensus estimate of $1.73. Revenue also climbed 12% to reach $59.87 billion, exceeding the projected $58.64 billion.
The impressive performance was driven by growth in the pharmaceutical segment, which saw revenue increase by 12% to $55.6 billion. This growth was fueled by increased brand and specialty pharmaceutical sales from existing customers.
Based on this strong performance, Cardinal Health raised its adjusted EPS guidance for fiscal year 2025 to a range of $7.55 to $7.70. This represents an increase from the company’s preliminary outlook of at least $7.50 and surpasses the consensus estimate of $7.53.
The company also updated its profit growth outlook for the Pharmaceutical and Specialty Solutions segment, projecting growth of 1%-3%, up from at least 1%. In the Global Medical Products and Distribution segment, Cardinal Health anticipates revenue growth between 3%-5%. Overall, the company expects revenue to increase by 10%-12% in fiscal year 2025.
Jason Hollar, CEO of Cardinal Health, expressed confidence in the company’s future, stating, “We enter the new fiscal year with momentum and confidence, evidenced by our raised fiscal year 2025 guidance.”
Following the earnings announcement, several analysts adjusted their price targets for Cardinal Health stock. Baird analyst Eric Coldwell maintained his Outperform rating and raised the price target from $130 to $137. Evercore ISI Group analyst Elizabeth Anderson also maintained her In-Line rating but increased the price target from $105 to $115.
Cardinal Health shares closed at $106.36 on Wednesday, signaling positive market sentiment towards the company’s future prospects.
