Summary
Cardinal Health, Inc. reported its fiscal first quarter 2012 results for the period ending September 30, 2011. The company saw a 10% increase in consolidated revenue, reaching $26.8 billion, driven by contributions from recent acquisitions and growth from existing customers. This revenue growth translated into a 13% increase in gross margin to $1.1 billion and a 13% rise in operating earnings to $412 million. However, earnings from continuing operations declined by 19% to $237 million, primarily due to a significant gain on the sale of its investment in CareFusion in the prior year's comparable quarter. The company's balance sheet showed a healthy increase in cash and equivalents to $2.0 billion, supported by strong operating cash flow, despite substantial share repurchases and dividend payments. The Pharmaceutical segment demonstrated robust performance, with acquisitions and strong generic programs being key drivers of its profit growth. The Medical segment experienced a slight profit decrease due to increased commodity costs and a specific product import issue, though overall segment revenue grew. Cardinal Health remains focused on strategic growth through acquisitions while also returning value to shareholders via dividends and share repurchases. The company is managing its working capital effectively, as indicated by its days sales outstanding, inventory days, and days payable outstanding metrics. Despite some headwinds in the Medical segment and ongoing tax audits, the company maintains confidence in its liquidity and ability to fund its operations and growth initiatives.
Financial Highlights
48 data points| Revenue | $26.79B |
| Cost of Revenue | $25.71B |
| Gross Profit | $1.08B |
| SG&A Expenses | $644.00M |
| Operating Income | $412.00M |
| Interest Expense | $23.00M |
| Net Income | $237.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 345.00M |
| Shares Outstanding (Diluted) | 349.00M |
Key Highlights
- 1Consolidated revenue increased by 10% to $26.8 billion for the quarter ended September 30, 2011, compared to the prior year.
- 2Operating earnings grew by 13% to $412.3 million, indicating improved operational efficiency.
- 3Net earnings from continuing operations decreased by 19% to $237.1 million, largely due to a prior year gain on the sale of CareFusion investment.
- 4Cash and equivalents increased to $2.0 billion, reflecting strong operating cash flow generation.
- 5The Pharmaceutical segment saw its profit increase by 19%, driven by acquisitions and strong generic program performance.
- 6The company repurchased $300 million of its common stock during the quarter, demonstrating a commitment to shareholder returns.
- 7Days Sales Outstanding (DSO) remained stable at 20.6 days, indicating effective accounts receivable management.