Summary
Cardinal Health Inc. reported robust revenue growth in its first quarter of fiscal year 2024, with total revenue increasing by 10% to $54.8 billion, primarily driven by strong performance in its Pharmaceutical segment. This growth was fueled by increased branded and specialty pharmaceutical sales, as well as the early distribution of COVID-19 vaccines. The company also saw a significant improvement in Non-GAAP operating earnings, which rose 35% to $571 million, and Non-GAAP diluted EPS increased by 44% to $1.73, reflecting improved segment profitability and a lower share count due to repurchases. Despite overall positive operational trends, GAAP operating earnings showed a loss of $14 million due to a substantial $581 million goodwill impairment charge related to the Medical segment. While this impairment impacts GAAP figures, the company's Non-GAAP performance highlights underlying operational strength. Cardinal Health continues to manage its liquidity effectively, with $3.9 billion in cash and equivalents and a strong credit facility. The company is also actively returning capital to shareholders through dividends and share repurchases, with $3.8 billion remaining on its share repurchase authorization.
Financial Highlights
47 data points| Revenue | $54.65B |
| Cost of Revenue | $52.91B |
| Gross Profit | $1.74B |
| SG&A Expenses | $1.19B |
| Operating Income | -$32.00M |
| Interest Expense | $11.00M |
| Net Income | -$12.00M |
| EPS (Basic) | $-0.05 |
| EPS (Diluted) | $-0.05 |
| Shares Outstanding (Basic) | 249.00M |
| Shares Outstanding (Diluted) | 249.00M |
Key Highlights
- 1Total revenue increased 10% year-over-year to $54.8 billion, driven by pharmaceutical and specialty pharmaceutical sales growth.
- 2Non-GAAP operating earnings surged 35% to $571 million, indicating improved underlying operational performance.
- 3Non-GAAP diluted EPS grew 44% to $1.73, benefiting from operational improvements and share repurchases.
- 4A significant $581 million pre-tax goodwill impairment charge was recorded for the Medical segment, impacting GAAP operating earnings and EPS negatively.
- 5Pharmaceutical segment profit increased 18% due to strong sales, including contributions from COVID-19 vaccine distribution and a robust generics program.
- 6Medical segment profit improved substantially year-over-year, benefiting from eased inflationary pressures and mitigation efforts.
- 7The company generated $545 million in net cash from operating activities, despite a $378 million opioid settlement payment.