Cardinal Health Earnings Highlights

Posted on August 07, 2018 Share This Article:


Cardinal Health's stock ($CAH) continues to rise after reporting better than expected Q4 earnings yesterday, beating on both profit and revenue.  

Q4 and FY '18 Earnings Highlights

  • Q4 revenue of $35 billion, an increase of 7 percent from the Q4 last year
  • FY Revenue of $137 billion, an increase of 5 percent from fiscal 2017
  • GAAP operating earnings of $126 million for fiscal year 2018 and non-GAAP operating earnings of $2.6 billion
  • Q4 GAAP diluted earnings per share (EPS) were a loss of $3.76, while non-GAAP diluted EPS were $1.01. GAAP diluted EPS for fiscal year 2018 were $0.81, and non-GAAP diluted EPS were $5.00.

“Fiscal ’18 was a challenging year, but we are making significant progress by taking decisive actions to drive growth, reduce costs and enhance profitability,” said Mike Kaufmann, CEO of Cardinal Health. “We are on track, and Cardinal Health’s best-in-class products and services continue to distinguish us with our customers and their patients.”

Business Segment Breakdown

Q4 Pharmaceutical Results

Cah Q4 Pharma
Cardinal Health Earnings Presentation

FY 2018 Pharmaceutical Results

Cah Fy Pharma
Cardinal Health Earnings Presentation


Q4 revenue for the Medical segment increased 14 percent to $4 billion, which was driven primarily by the acquisition of the Patient Recovery business.

Q4 Medical Results

Fy Medical Cah
Cardinal Health Earnings Presentation

FY 2018 Medical Results

Cah Medical
Cardinal Health Earnings Presentation

Challenges

While the company still believes Cordis is on its way to profitable growth by the end of fiscal 2019, there is still a negative tax dynamic from Cordis that has been weighing on the organization. Inventory and supply chain is also a key component to the turnaround at Cordis. The ongoing improvement in the company's demand planning system, and success of their new leadership team, will be imperative to their goal in achieving profitable growth by the end of 2019. 

The company updated guidance for its upcoming fiscal year 2019, expecting to see non-GAAP diluted EPS of between $4.90 and $5.15

Cardinal Health Q4FY18 Earnings Deck