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Cardinal Health Q2 Profit Tops Estimates, Lifts FY Profit View; Stock Up

Cardinal Health (CAH) reported that its net earnings attributable to the company for the second quarter of fiscal 2020 declined to $220 million or $0.75 per share from $280 million or $0.93 per share in the prior year.

In Thursday pre-market trade, CAH is trading at $56.00, up $3.32 or 6.30%.

Non-GAAP earnings per share for the second-quarter were $1.52 compared to $1.29 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.22 per share. Analysts' estimates typically exclude special items.

The company raised its fiscal year 2020 non-GAAP earnings per share guidance to a range of $5.20 - $5.40 from the range of $4.85 - $5.10. Analysts expect annual earnings of $5.04 per share.

"With the first half of the year behind us, we are raising our fiscal year 2020 guidance. This increase was driven by improved performance across our Pharmaceutical segment, particularly within our generics program," said Mike Kaufmann, CEO of Cardinal Health.

Second quarter GAAP operating earnings decreased 34% to $334 million, which included a $96 million charge in connection to the recently announced voluntary surgical gown-related recalls. Non-GAAP operating earnings increased 1% to $646 million.

Quarterly revenues was $39.74 billion, an increase of 5% from the prior year. Analysts expected revenues of $39.43 billion for the quarter.

Second quarter revenue for the Pharmaceutical segment increased 6% to $35.7 billion, due to sales growth from Pharmaceutical Distribution and Specialty Solutions customers.

Second quarter revenue for the Medical segment was flat at $4.0 billion. Growth in Cardinal Health at Home was offset by a decline in products and distribution.

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