Cardinal Health Revenue Rises 23%

Cardinal Health Inc. reported 23% revenue growth in its latest quarter, driven by its pharmaceutical segment, as the company's top and bottom lines beat analysts' expectations.

Cardinal, a drug wholesaler that also makes gloves and surgical apparel, is working to expand its portfolio of medical products as hospitals merge. It provides resources to more than three-quarters of U.S. hospitals.

The Dublin, Ohio, company completed a $1.94 billion acquisition of the Cordis heart-product business from Johnson & Johnson in October, adding stents and catheters to the list of products Cardinal offers. In July, Cardinal bought Harvard Drug Group for roughly $1.12 billion, a deal that broadens its offerings of generic and over-the-counter medications.

In the latest quarter, pharmaceutical segment revenue climbed 25% to $28.29 billion, while medical segment revenue grew 8.5% to $3.16 billion.

For the period ended Dec. 31, Cardinal Health reported a profit of $326 million, or 98 cents a share, up from $289 million, or 86 cents a share, a year earlier. Excluding acquisition-related costs and other items, per-share earnings rose to $1.30 from $1.20. Revenue increased 23% to $31.45 billion.

Analysts polled by Thomson Reuters expected per-share profit of $1.26 and revenue of $29.23 billion.

The company reaffirmed its earnings forecast for the year, saying it expects per-share profit of between $5.15 and $5.35.

Shares of Cardinal Health, which have declined 8.9% in the past month, were inactive premarket.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

February 01, 2016 08:35 ET (13:35 GMT)

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