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Cardinal Health Reiterates FY20 Outlook; Approves Dividend - Quick Facts

While reporting its financial results for the first quarter on Thursday, Cardinal Health Inc. (CAH) reaffirmed its outlook for fiscal year 2020 adjusted earnings per share attributable to the company of $4.85 to $5.10.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $4.99 per share for the year. Analysts' estimates typically exclude special items.

Cardinal Health's board of directors approved a quarterly dividend of $0.4811 per share. The dividend will be payable on January 15, 2020 to shareholders of record at the close of business on January 2, 2020.

Cardinal Health said that in October 2019, it agreed in principle to a global settlement framework with a leadership group of four state attorneys general that is designed to resolve all pending and potential opioid lawsuits by states and political subdivisions.

The settlement framework includes, among other significant components, an agreement in principle by the company to pay up to $5.56 billion over 18 years.

However, the company noted there was no assurance that a definitive settlement agreement will be finalized by the necessary parties or that the contingencies to any agreement will be satisfied.

In addition, Cardinal Health agreed to a $66 million settlement with two Ohio counties. In connection with these matters, the company accrued $5.63 billion, or $5.14 billion after tax, which is excluded from its adjusted earnings for the first quarter.

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