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Cardinal Health Q3 Results Beat View; Raises 2019 Profit View

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Cardinal Health Inc. (CAH) Thursday reported a profit for the third quarter fiscal year 2019 that increased 16 percent from last year, while quarterly revenue rose 5 percent.

Both adjusted earnings and revenue beat analysts' estimates.

The company raised the lower end of its fiscal 2019 non-GAAP earnings per share guidance to a range of $5.02 - $5.17 from the range of $4.97 - $5.17. Analysts expect annual earnings of $5.08 per share.

The company reported that its net earnings attributable to the company for third quarter fiscal year 2019 grew 16 percent to $296 million from last year's $255 million, with earnings per share improving to $0.99 from $0.81 in the previous year.

During the third quarters of fiscal 2019 and 2018, GAAP effective tax rates were 20.0 percent and 45.1 percent, respectively, and non-GAAP effective tax rates were 21.6 percent and 37.5 percent, respectively.

The lower effective tax rates for the latest-quarter included net favorable discrete items of $0.06 per share and a lower U.S. federal income tax rate. During the same quarter last year, the tax rate included unfavorable discrete items and a significant negative impact from Cordis.

Non-GAAP earnings per share for the quarter increased 14 percent to $1.59 from $1.39 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.43 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 5 percent to $35.23 billion from $33.63 billion in the previous year. Analysts expected revenues of $35.20 billion for the quarter.

Quarterly revenue for the Pharmaceutical segment increased 6 percent to $31.4 billion due to sales growth from Pharmaceutical Distribution and Specialty Solutions customers.

Third quarter revenue for the Medical segment was down 1 percent due to the divestitures of the China distribution and naviHealth businesses, offset by growth from existing customers.

In the pre-market trade, CAH is trading at $50.00, up $0.31 or 0.62 percent.

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