Summary
Cardinal Health, Inc. reported solid revenue growth for the nine months ending March 31, 2010, with total revenue reaching $74.0 billion, a 3% increase year-over-year. This growth was primarily driven by the Pharmaceutical segment, which saw an increase in pharmaceutical price appreciation and volume. While revenue showed an upward trend, operating earnings experienced a slight decline of 1% to $973 million for the same period. This decrease was mainly attributed to higher distribution, selling, general, and administrative (SG&A) expenses, as well as increased restructuring and impairment charges. The company successfully navigated the complexities of the CareFusion spin-off, which significantly impacted year-over-year comparisons. The spin-off resulted in a substantial increase in cash and cash equivalents to $2.6 billion, bolstered by proceeds from the sale of CareFusion stock and strong operating cash flows. Despite ongoing litigation and tax matters, Cardinal Health maintained compliance with its financial covenants, indicating a stable liquidity position.
Financial Highlights
47 data points| Revenue | $24.34B |
| Cost of Revenue | $23.33B |
| Gross Profit | $1.01B |
| SG&A Expenses | $628.60M |
| Operating Income | $366.30M |
| Interest Expense | $27.70M |
| Net Income | $222.40M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 358.70M |
| Shares Outstanding (Diluted) | 361.80M |
Key Highlights
- 1Revenue increased by 3% to $74.0 billion for the nine months ended March 31, 2010.
- 2Operating earnings decreased slightly by 1% to $973 million for the nine months ended March 31, 2010, impacted by increased SG&A and restructuring costs.
- 3Net earnings for the nine months ended March 31, 2010 were $418.7 million, a significant decrease from $878.4 million in the prior year, largely due to the spin-off of CareFusion and a related tax charge.
- 4The company generated strong operating cash flow of $1.8 billion for the nine months ended March 31, 2010.
- 5Cash and cash equivalents increased substantially to $2.6 billion as of March 31, 2010, up from $1.2 billion at June 30, 2009.
- 6The company realized gains from the sale of CareFusion common stock, totaling $43.3 million for the nine months ended March 31, 2010.
- 7The Pharmaceutical segment remains the largest revenue contributor, with Medical segment revenue also showing growth.