Cardinal Health's Revenue Climbs, Driven by Pharmaceuticals Segment

Cardinal Health Inc. reported double-digit revenue growth in its latest quarter, driven by its pharmaceuticals segment, as the company beat analysts' expectations.

Still, the company narrowed its earnings forecast for the year, decreasing the midpoint of its range. It now expects adjusted per-share profit of between $5.17 and $5.27, compared with its range of $5.15 to $5.35 previously. Analysts had expected adjusted profit for the year of $5.28 a share.

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.

In the latest quarter, pharmaceutical-segment revenue climbed 22% to $27.5 billion, while medical-segment revenue grew 13% to $3.1 billion.

For the period ended March 31, Cardinal Health reported a profit of $386 million, or $1.17 a share, up from $365 million, or $1.09 a share, a year earlier. Excluding acquisition-related costs and other items, per-share earnings rose to $1.43 from $1.19. Revenue increased 21% to $30.7 billion.

Analysts polled by Thomson Reuters expected per-share profit of $1.32 and revenue of $30.39 billion.

Shares of Cardinal Health, which have increased 9.5% in the past three months, were inactive premarket.

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.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 08:15 ET (12:15 GMT)

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