Summary
Cardinal Health, Inc. reported a significant 19% increase in revenue for fiscal year 2016, reaching $121.5 billion, primarily driven by strong performance in its Pharmaceutical segment, bolstered by new and existing distribution customers, and complemented by strategic acquisitions. The company also saw a healthy increase in both GAAP and non-GAAP operating earnings, growing by 14% and 17% respectively. Diluted earnings per share also experienced robust growth, with GAAP EPS up 20% to $4.32 and non-GAAP EPS up 20% to $5.24. Key to this growth were significant acquisitions, including Cordis, Harvard Drug Group, and naviHealth, which expanded the company's Medical segment capabilities and its pharmaceutical distribution reach. Despite these investments, which led to a decrease in cash and equivalents, the company maintained a strong liquidity position through its credit facilities. Management anticipates continued growth, though with moderating profit growth in the Pharmaceutical segment for fiscal year 2017 due to customer pricing changes and the loss of a large customer.
Financial Highlights
50 data points| Revenue | $121.55B |
| Cost of Revenue | $115.00B |
| Gross Profit | $6.54B |
| SG&A Expenses | $3.65B |
| Operating Income | $2.46B |
| Interest Expense | $178.00M |
| Net Income | $1.43B |
| EPS (Basic) | $4.36 |
| EPS (Diluted) | $4.32 |
| Shares Outstanding (Basic) | 327.00M |
| Shares Outstanding (Diluted) | 330.00M |
Key Highlights
- 1Revenue grew 19% year-over-year to $121.5 billion in fiscal year 2016, driven by pharmaceutical distribution customers and strategic acquisitions.
- 2GAAP operating earnings increased 14% to $2.5 billion, while non-GAAP operating earnings rose 17% to $2.9 billion.
- 3GAAP diluted EPS increased 20% to $4.32, and non-GAAP diluted EPS also grew 20% to $5.24.
- 4The company completed significant acquisitions in fiscal year 2016, including Cordis ($1.9 billion), Harvard Drug Group ($1.1 billion), and naviHealth (71% stake for $238 million), expanding its Medical and Pharmaceutical segments.
- 5Cash and equivalents decreased from $4.6 billion to $2.4 billion, primarily due to $3.6 billion deployed for acquisitions.
- 6The Pharmaceutical segment profit increased 19% to $2.5 billion, while the Medical segment profit grew 6% to $457 million.
- 7Cardinal Health continued its shareholder return program, increasing its quarterly dividend by 13% and repurchasing $651 million of its common shares during fiscal year 2016.