Cardinal Health Raises Outlook, Profit Rises 44%

Cardinal Health Inc. raised its annual profit outlook and reported that its earnings rose 44% on better-than-expected revenue growth.

For the year ending in June, the company raised its forecast for per-share earnings from continuing operations to $5.15 to $5.35, from its previous estimate for per-share profit from continuing operations of $4.85 to $5.05.

Cardinal, a drug wholesaler that also makes gloves and surgical apparel, is working to expand its portfolio of medical products as hospitals merge. The Dublin, Ohio, company recently completed its $1.94 billion acquisition of the Cordis heart-product business from Johnson & Johnson, adding stents and catheters to the list of products Cardinal offers. Earlier this year, Cardinal completed its roughly $1.12 billion acquisition of Harvard Drug Group, a deal that broadens its offerings of generic and over-the-counter medications.

In the latest quarter, pharmaceutical segment revenue climbed 19% to $25.1 billion, while medical segment revenue grew 2% to $2.9 billion.

For the period ended Sept. 30, Cardinal Health reported a profit of $383 million, or $1.15 a share, up from $266 million, or 78 cents a share, a year earlier. Excluding acquisition-related costs and other items, per-share earnings rose to $1.38 from $1. Revenue increased 17% to $28.06 billion.

Analysts polled by Thomson Reuters expected per-share profit of $1.10 and revenue of $27.18 billion.

Write to Tess Stynes at [e-mail]

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(END) Dow Jones Newswires

November 02, 2015 08:25 ET (13:25 GMT)

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