Summary
Cardinal Health, Inc. reported strong revenue growth of 11% to $226.8 billion for fiscal year 2024, driven primarily by its Pharmaceutical and Specialty Solutions segment. Despite this top-line expansion, the company experienced a significant goodwill impairment charge of $675 million related to its Global Medical Products and Distribution (GMPD) segment, which fully impaired the goodwill for that segment. Non-GAAP diluted EPS showed substantial growth, increasing by 29% to $7.53, reflecting improved operational performance excluding these non-recurring charges. The company also announced the expiration of its pharmaceutical distribution contracts with OptumRx at the end of June 2024, which is expected to negatively impact fiscal 2025 results. However, the recent acquisition of Specialty Networks for $1.2 billion is anticipated to bolster the Pharmaceutical and Specialty Solutions segment. Cardinal Health maintained its focus on capital deployment, returning capital to shareholders through share repurchases and dividends, while managing its debt obligations and accruing significant reserves for opioid-related litigation.
Financial Highlights
51 data points| Revenue | $226.83B |
| Cost of Revenue | $219.41B |
| Gross Profit | $7.41B |
| SG&A Expenses | $5.00B |
| Operating Income | $1.24B |
| Interest Expense | $51.00M |
| Net Income | $852.00M |
| EPS (Basic) | $3.48 |
| EPS (Diluted) | $3.45 |
| Shares Outstanding (Basic) | 245.00M |
| Shares Outstanding (Diluted) | 247.00M |
Key Highlights
- 1Total revenue increased by 11% to $226.8 billion in fiscal year 2024.
- 2Pharmaceutical and Specialty Solutions segment revenue grew by 11%, driven by branded and specialty pharmaceutical sales.
- 3Global Medical Products and Distribution (GMPD) segment experienced a $675 million goodwill impairment charge, fully impairing the goodwill for this segment.
- 4Non-GAAP diluted EPS increased by a strong 29% to $7.53.
- 5The company completed the $1.2 billion acquisition of Specialty Networks to expand its offerings in key therapeutic areas.
- 6The expiration of OptumRx contracts is expected to negatively impact fiscal 2025 results.
- 7Cardinal Health made significant payments and prepayments related to opioid litigation settlements, totaling $378 million in annual payments and $239 million in prepayments during fiscal 2024.