Summary
Cardinal Health Inc. reported solid revenue growth for the quarter and six months ended December 31, 2011, with a 7% increase in revenue for the quarter ($27.1 billion) and an 8% increase for the six-month period ($53.9 billion) compared to the prior year. This growth was driven by contributions from acquisitions and increased sales to existing customers across both its Pharmaceutical and Medical segments. The company also demonstrated significant improvement in operating earnings, which rose 31% and 22% for the respective periods, largely due to the strong performance of generic programs and acquisitions within the Pharmaceutical segment. Despite increased revenue, the company's net earnings saw a slight decrease for the six-month period ($498.8 million compared to $510.2 million), primarily due to a one-time gain from the sale of its investment in CareFusion in the prior year's comparable period. However, earnings from continuing operations remained robust, showing an increase for the quarter. The company maintained a strong liquidity position with $1.8 billion in cash and equivalents at the end of the period, supported by operating cash flow, and continued its commitment to shareholder returns through dividends and share repurchases.
Financial Highlights
49 data points| Revenue | $27.08B |
| Cost of Revenue | $25.96B |
| Gross Profit | $1.11B |
| SG&A Expenses | $640.00M |
| Operating Income | $449.00M |
| Interest Expense | $23.00M |
| Net Income | $262.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 345.00M |
| Shares Outstanding (Diluted) | 349.00M |
Key Highlights
- 1Revenue increased 7% year-over-year to $27.1 billion for the three months ended December 31, 2011, and 8% to $53.9 billion for the six months ended December 31, 2011.
- 2Operating earnings grew significantly, up 31% to $449.3 million for the quarter and 22% to $861.6 million for the six-month period.
- 3Pharmaceutical segment revenue grew 6% for the quarter and 8% for the six months, driven by acquisitions and existing customer growth.
- 4Medical segment revenue increased 9% for the quarter and 10% for the six months, boosted by increased volume and a transition in the CareFusion relationship.
- 5Net earnings decreased slightly for the six-month period ($498.8 million vs. $510.2 million) due to a prior year gain on the sale of CareFusion investment, though earnings from continuing operations were strong.
- 6The company maintained a healthy cash and equivalents balance of $1.8 billion as of December 31, 2011.
- 7Dividends per share increased to $0.215 for the quarter, and the company continued its share repurchase program.