On November 3, 2023, Cardinal Health Inc (CAH, Financial) released its first quarter fiscal 2024 earnings report. The company reported a 10% increase in revenue to $54.8 billion, up from $49.6 billion in the same quarter of the previous year. The GAAP operating loss was $14 million due to a non-cash, pre-tax goodwill impairment of $581 million related to the Medical segment. However, non-GAAP operating earnings increased 35% to $571 million in the quarter, driven by significant increases in both Pharmaceutical and Medical segment profits.
Financial Performance Highlights
Cardinal Health Inc (CAH, Financial)'s Pharmaceutical segment profit grew 18% to $507 million, and the Medical segment delivered $71 million in segment profit. Non-GAAP diluted EPS increased 44% to $1.73, reflecting the increase in non-GAAP operating earnings, a lower share count, and lower interest and other expenses, partially offset by a higher non-GAAP effective tax rate.
The company's CEO, Jason Hollar, commented on the results, stating,
With strong first quarter results and an improved outlook for the year, we are continuing our operating momentum into fiscal 2024. In Q1, we delivered significant profit growth in both the Pharmaceutical and Medical segments, which along with our favorable capital structure and opportunistic capital deployment, gives us confidence to raise fiscal 2024 non-GAAP EPS guidance."
Financial Tables Summary
The financial tables provided in the report show a detailed breakdown of Cardinal Health Inc (CAH, Financial)'s performance. The company's revenue increased by 10% year-over-year to $54.8 billion, while non-GAAP operating earnings rose by 35% to $571 million. Net earnings attributable to Cardinal Health Inc (CAH) were $5 million, a significant decrease from $110 million in the same quarter of the previous year. This was primarily due to a goodwill impairment related to the Medical segment.
The Pharmaceutical segment saw an 11% increase in revenue to $51.0 billion, driven by brand and specialty pharmaceutical sales growth from existing customers. The Medical segment's revenue remained flat at $3.8 billion, reflecting lower PPE volumes and pricing, offset by growth in at-Home Solutions and inflationary impacts.
Outlook for Fiscal 2024
Cardinal Health Inc (CAH, Financial) raised its fiscal 2024 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $6.75 to $7.00, from $6.50 to $6.75. The company also updated its Pharmaceutical segment profit outlook for fiscal 2024 to 7% to 9% growth, from 4% to 6% growth.
The company also highlighted recent achievements, including initiating a $500M accelerated share repurchase program, distributing recently commercialized COVID-19 vaccines, launching its Kangaroo OMNIâ„¢ Enteral Feeding Pump in the U.S., and being named to the 100 Best Corporate Citizens ranking by 3BL Media.
Explore the complete 8-K earnings release (here) from Cardinal Health Inc for further details.
