Summary
Cardinal Health Inc. reported its third-quarter fiscal year 2018 results, showcasing a 6% increase in revenue to $33.6 billion, driven by growth in pharmaceutical distribution and specialty pharmaceutical customers, as well as the contribution from the recent Patient Recovery Business acquisition. However, GAAP operating earnings saw a 10% decrease to $546 million, impacted by increased amortization, litigation charges related to IVC filters, and performance in specific product lines. Non-GAAP operating earnings showed a modest 3% increase to $781 million, highlighting the company's focus on underlying operational performance. The company also reported a significant impact from the Tax Cuts and Jobs Act, which resulted in a substantial provisional net tax benefit. The balance sheet reflects a notable decrease in cash and equivalents from $6.9 billion to $2.2 billion, primarily due to $6.1 billion spent on acquisitions, alongside dividend payments and share repurchases. The company successfully divested its China distribution business, generating net proceeds of $861 million. Looking ahead, Cardinal Health anticipates continued operating cost and inventory challenges in its Medical segment's Cordis business and expects customer pricing changes to negatively impact its Pharmaceutical segment's profit in the near future.
Financial Highlights
46 data points| Revenue | $33.63B |
| Cost of Revenue | $31.72B |
| Gross Profit | $1.91B |
| SG&A Expenses | $1.13B |
| Operating Income | $546.00M |
| Interest Expense | $84.00M |
| Net Income | $255.00M |
| Shares Outstanding (Basic) | 313.00M |
| Shares Outstanding (Diluted) | 315.00M |
Key Highlights
- 1Revenue increased by 6% to $33.6 billion for the third quarter of fiscal 2018, primarily due to pharmaceutical distribution growth and the Patient Recovery Business acquisition.
- 2GAAP operating earnings decreased by 10% to $546 million, attributed to higher amortization, litigation charges, and product performance.
- 3Non-GAAP operating earnings increased by 3% to $781 million, reflecting underlying business performance excluding certain charges.
- 4Cash and equivalents decreased significantly from $6.9 billion to $2.2 billion, mainly due to $6.1 billion invested in acquisitions.
- 5The company completed the divestiture of its China distribution business, resulting in net proceeds of $861 million.
- 6A provisional net tax benefit of $952 million was recorded in the nine-month period due to the U.S. Tax Cuts and Jobs Act.
- 7Litigation charges related to Inferior Vena Cava (IVC) filter product liability claims contributed to increased expenses.