Q4 2024 Cardinal Health Inc Earnings Call Transcript
Key Points
- Cardinal Health Inc (CAH) reported a 29% increase in EPS for both Q4 and fiscal year '24, exceeding guidance.
- The company delivered nearly $4 billion in adjusted free cash flow for the year, ending with approximately $5 billion in cash.
- Cardinal Health Inc (CAH) managed through a significant customer transition and raised its guidance for fiscal year '25.
- The Pharmaceutical and Specialty Solutions segment grew revenue by 14% for the year, with the Specialty business now over $36 billion.
- The GMPD segment returned to profitability, delivering approximately $240 million in year-over-year segment profit improvement.
- The company identified a long-standing accounting error in its at-Home Solutions business, leading to revised financials for fiscal years '22 through Q3 fiscal year '24.
- The large customer contract expiration is expected to result in a nearly $40 billion revenue headwind for fiscal year '25.
- The GMPD segment's Q1 profit is expected to be low, up to $20 million, due to unfavorable manufacturing cost timing and start-up costs.
- Interest and other expenses are expected to increase significantly in fiscal year '25 due to lower average cash balances and higher debt rates.
- The fiscal year '25 adjusted free cash flow is projected to be approximately $1 billion, reflecting negative impacts from the large contract unwind.
Good day, and welcome to the Fourth Quarter FY 2024 Cardinal Health Inc. earnings conference call. My name is George, I'll be your coordinator for today's event. Please note that this conference is being recorded. (Operator Instructions)
I would now like to hand the call over to your host today, Mr. Matt Sims, Vice President of Investor Relations. Please go ahead, sir.
Welcome to this morning's Cardinal Health Fourth Quarter and Fiscal '24 Earnings Conference Call, and thank you for joining us. With me today are Cardinal Health CEO, Jason Hollar; and our CFO, Aaron Alt. You can find this morning's earnings press release and investor presentation on the Investor Relations section of our website at ir.cardinalhealth.com.
Since we will be making forward-looking statements today, let me remind you that the matters addressed in the statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer
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