Summary
Cardinal Health Inc. (CAH) reported its second quarter fiscal year 2021 results, demonstrating revenue growth driven by its Pharmaceutical segment. Total revenue increased by 5% year-over-year for both the three and six months ended December 31, 2020, reaching $41.5 billion and $80.6 billion, respectively. This growth was primarily attributed to higher sales from pharmaceutical distribution and specialty solutions customers. While revenue showed a positive trend, the company's GAAP operating earnings presented a mixed picture. For the three months ended December 31, 2020, GAAP operating earnings saw a significant increase of 38% to $461 million, largely due to a favorable comparison to prior year recall costs. However, for the six months ended December 31, 2020, the company reported a GAAP operating loss of $163 million, significantly improved from a $4.9 billion loss in the prior year period, primarily due to substantial charges related to opioid litigation in the prior year. Non-GAAP operating earnings, which exclude certain charges, showed more stable performance, increasing slightly for the six-month period while decreasing marginally for the three-month period.
Financial Highlights
46 data points| Revenue | $41.54B |
| Cost of Revenue | $39.77B |
| Gross Profit | $1.78B |
| SG&A Expenses | $1.15B |
| Operating Income | $461.00M |
| Interest Expense | $46.00M |
| Net Income | $629.00M |
| Shares Outstanding (Basic) | 294.00M |
| Shares Outstanding (Diluted) | 295.00M |
Key Highlights
- 1Total revenue for the quarter increased 5% to $41.5 billion, driven by pharmaceutical distribution and specialty solutions.
- 2GAAP operating earnings for the three months improved significantly by 38% to $461 million due to a favorable comparison to prior year recall costs.
- 3GAAP operating loss for the six months improved from $4.9 billion to $163 million, largely due to reduced opioid litigation charges compared to the prior year.
- 4Non-GAAP operating earnings remained relatively stable, with a slight increase of 2% to $1.25 billion for the six-month period.
- 5Non-GAAP diluted EPS increased by 14% for the quarter to $1.74 and by 16% for the six-month period to $3.26, benefiting from discrete tax items.
- 6Cash and equivalents increased to $3.7 billion at December 31, 2020, up from $2.8 billion at June 30, 2020.
- 7The company continues to be involved in opioid litigation, with $6.59 billion accrued as of December 31, 2020, while settlement negotiations are ongoing.