Summary
Cardinal Health Inc. reported robust growth in fiscal year 2015, with total revenue increasing by 13% to $102.5 billion. This expansion was primarily driven by strong performance in its Pharmaceutical segment, fueled by sales growth from existing and new customers, alongside increased sales of branded pharmaceuticals and newly launched hepatitis C treatments. The Medical segment also contributed positively, with revenue growth attributed to acquisitions. The company highlighted significant strategic moves, including the acquisition of Harvard Drug Group for $1.1 billion and the pending acquisition of Johnson & Johnson's Cordis business for $1.9 billion, aimed at strengthening its core offerings and expanding its market reach. Financially, Cardinal Health demonstrated improved profitability, with GAAP operating earnings up 15% to $2.2 billion and GAAP diluted EPS rising 7% to $3.61. The company also returned value to shareholders through share repurchases and increased dividends. Despite the positive trajectory, the company noted the ongoing impact of the Walgreens contract expiration, which negatively affected revenue growth, and highlighted the increasing impact of acquisition-related costs on future earnings.
Financial Highlights
50 data points| Revenue | $102.53B |
| Cost of Revenue | $96.82B |
| Gross Profit | $5.71B |
| SG&A Expenses | $3.24B |
| Operating Income | $2.16B |
| Interest Expense | $141.00M |
| Net Income | $1.22B |
| EPS (Basic) | $3.66 |
| EPS (Diluted) | $3.62 |
| Shares Outstanding (Basic) | 332.00M |
| Shares Outstanding (Diluted) | 335.00M |
Key Highlights
- 1Revenue increased by 13% to $102.5 billion in fiscal year 2015, driven by strong performance in the Pharmaceutical segment.
- 2GAAP operating earnings grew 15% to $2.2 billion, and GAAP diluted EPS increased by 7% to $3.61.
- 3Completed the acquisition of Harvard Drug Group for $1.1 billion and announced the pending acquisition of Cordis business for $1.9 billion to expand strategic areas.
- 4Pharmaceutical segment profit increased by 20% due to strong generics program performance and sales growth, partially offset by customer pricing changes.
- 5Medical segment profit saw a decrease of 3%, primarily due to a decline in national brand product distribution, though offset by strategic product expansion.
- 6The company returned $1.0 billion to shareholders through share repurchases and increased its quarterly dividend by 13%.
- 7Cash and equivalents increased significantly to $4.6 billion from $2.9 billion year-over-year, supported by operating cash flow and debt issuance.