Summary
Cardinal Health Inc. reported its second quarter fiscal year 2017 results, with total revenue increasing by 5% to $33.1 billion for the quarter and 10% to $65.2 billion for the six months ended December 31, 2016. This growth was primarily driven by the Pharmaceutical segment's sales to pharmaceutical distribution customers and the Medical segment, which benefited from the inclusion of the Cordis business acquired in October 2015. However, operating earnings saw a decline, with GAAP operating earnings down 4% to $542 million for the quarter and 9% to $1,076 million for the six months. Non-GAAP operating earnings also decreased by 4% and 6%, respectively. These declines are attributed to pricing changes in the generic pharmaceutical market, the loss of a major pharmaceutical distribution customer, and reduced branded pharmaceutical inflation. Despite these pressures, the company continues to return capital to shareholders through dividends and share repurchases, and it maintains adequate capital resources for its operational needs.
Financial Highlights
47 data points| Revenue | $33.15B |
| Cost of Revenue | $31.55B |
| Gross Profit | $1.60B |
| SG&A Expenses | $910.00M |
| Operating Income | $542.00M |
| Interest Expense | $44.00M |
| Net Income | $324.00M |
| Shares Outstanding (Basic) | 318.00M |
| Shares Outstanding (Diluted) | 319.00M |
Key Highlights
- 1Total revenue increased 5% to $33.1 billion for the quarter and 10% to $65.2 billion for the six months ended December 31, 2016, driven by pharmaceutical and medical segment growth.
- 2GAAP operating earnings decreased 4% to $542 million for the quarter and 9% to $1,076 million for the six months.
- 3Non-GAAP operating earnings also declined, by 4% and 6% for the respective periods, largely due to generic pharmaceutical customer pricing changes and the loss of a large customer.
- 4The Medical segment showed strong profit growth, up 50% for the quarter and 39% for the six months, aided by the Cordis acquisition.
- 5GAAP diluted EPS decreased 8% to $1.97 for the six months, while non-GAAP diluted EPS decreased 4% to $2.57 for the same period.
- 6The company returned $600 million to shareholders through share repurchases and $293 million in dividends during the six months ended December 31, 2016.
- 7Cash and equivalents decreased to $1.9 billion at December 31, 2016, from $2.4 billion at June 30, 2016, primarily due to share repurchases, dividends, and capital expenditures.