Summary
Cardinal Health, Inc. reported total revenue of $145.5 billion for fiscal year 2019, representing a 6% increase from the prior year, largely driven by its Pharmaceutical segment. While overall revenue grew, the company's non-GAAP operating earnings saw a 9% decline, attributed to challenges in the Pharmaceutical segment's generics program and customer contract renewals, alongside performance issues in the Medical segment's branded products. Despite the decline in non-GAAP operating earnings, Cardinal Health's Non-GAAP diluted EPS increased by 6% to $5.28, benefiting from a lower effective tax rate and reduced share count. The company generated strong operating cash flow of $2.7 billion and ended the year with a robust cash balance of $2.5 billion. Significant events during the year included the divestiture of its naviHealth business, contributing a pre-tax gain of $508 million, and the company's ongoing efforts in cost-saving initiatives, with expected charges of $120-145 million in fiscal year 2020. Investors should note the ongoing opioid litigation as a significant risk factor, with potential material adverse effects on the company's financial condition and operations.
Financial Highlights
49 data points| Revenue | $145.53B |
| Cost of Revenue | $138.70B |
| Gross Profit | $6.83B |
| SG&A Expenses | $4.48B |
| Operating Income | $2.06B |
| Interest Expense | $294.00M |
| Net Income | $1.36B |
| EPS (Basic) | $4.55 |
| EPS (Diluted) | $4.53 |
| Shares Outstanding (Basic) | 300.00M |
| Shares Outstanding (Diluted) | 301.00M |
Key Highlights
- 1Total revenue for fiscal 2019 reached $145.5 billion, a 6% increase year-over-year, primarily driven by pharmaceutical distribution and specialty pharmaceutical customers.
- 2Non-GAAP operating earnings decreased by 9% to $2.4 billion, impacted by the Pharmaceutical segment's generics program, customer contract renewals, and Medical segment branded product performance.
- 3Non-GAAP diluted EPS increased by 6% to $5.28, boosted by a lower effective tax rate and share repurchases.
- 4The company generated $2.7 billion in net cash provided by operating activities and ended the fiscal year with $2.5 billion in cash and cash equivalents.
- 5Cardinal Health completed the divestiture of its naviHealth business, recognizing a pre-tax gain of $508 million.
- 6The company is implementing cost-saving initiatives expected to result in restructuring charges of $120 million to $145 million, primarily in fiscal year 2020.
- 7Significant legal proceedings related to opioid distribution continue, posing a material risk to the company's operations and financial condition.