We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cardinal Health (CAH) Q2 Earnings & Revenues Top Estimates
Read MoreHide Full Article
Cardinal Health, Inc. (CAH - Free Report) reported second-quarter fiscal 2021 adjusted earnings of $1.74 per share (EPS), which surpassed the Zacks Consensus Estimate of $1.45 by 20%. The bottom line also improved 14.5% year over year.
Revenue Details
Revenues increased 4.5% on a year-over-year basis to $41.54 billion. The top line beat the Zacks Consensus Estimate by 0.01%.
Segmental Analysis
Pharmaceutical Segment
In the fiscal second quarter, pharmaceutical revenues rose 4.3% to $37.24 billion on a year-over-year basis. The upside can be attributed to growth in sales from Pharmaceutical Distribution and Specialty Solutions customers.
Cardinal Health, Inc. Price, Consensus and EPS Surprise
Pharmaceutical witnessed a decline of 10.6% in profits to $413 million due to decline in volume on account of the COVID-19 impact, particularly in the generics program and Nuclear and Precision Health Solutions business. However, increase in contribution from brand sales mix partially offset the downside.
Medical Segment
In the quarter under review, revenues at this segment increased 7.1% to $4.31 billion attributable to higher sales from personal protective equipment (PPE) and increase in volumes in its lab business. However, adverse impact of cancelled or deferred elective procedures partially offset the upside.
Medical segment profit improved 21% to $236 million, courtesy of net positive impact from COVID-19 and benefits from cost savings that include global manufacturing efficiencies.
Margin Analysis
Gross profit rose 3.6% year over year to $1.78 billion.
As a percentage of revenues, gross margin in the reported quarter was 4.3%, remaining flat on a year-over-year basis.
Distribution, selling, general and administrative expenses totaled $1.15 billion, down 1.4% year over year.
The company reported operating income of $461 million in the quarter under review, up 38% from the prior-year quarter. As a percentage of revenues, operating margin in the reported quarter was 1.1%, up 30 basis points (bps) from the year-ago quarter.
Financial Update
The company exited the quarter with cash and cash equivalents of $3.74 billion, compared with $2.75 billion on a sequential basis.
Net cash from operating activities totaled $1.22 billion at end of the fiscal second quarter, compared with $697 million in the year-ago quarter.
2021 Guidance Raised
The company anticipates adjusted earnings per share between $5.85 and $6.10 (up from the previously guided range of $5.65-$5.95). The Zacks Consensus Estimate is pegged at $5.82 per share.
Conclusion
Cardinal Health exited the fiscal second quarter on a strong note, wherein both earnings and revenues outpaced the consensus mark. The company witnessed revenue growth in both its segments in the quarter under review. Raised fiscal 2021 outlook is a positive.
Notably, the company inked a deal with the Centers for Disease Control and Prevention (CDC) to become a network administrator in Phase 2 of the Federal Pharmacy Partnership Strategy for COVID-19. Further, the Ohio Department of Health chose the Cardinal Health OptiFreight Logistics business to help in the distribution efforts of COVID-19 vaccines. These developments fuel optimism in the stock.
However, intense competition and customer concentration are other concerns. The company witnessed a decline in profit with respect to Pharmaceutical segment in the quarter under review due to COVID-19 induced volume declines.
Zacks Rank
Currently, Cardinal Health carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Hologic sports a Zacks Rank of 1 (Strong Buy), both Abbott and AngioDynamics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Cardinal Health (CAH) Q2 Earnings & Revenues Top Estimates
Cardinal Health, Inc. (CAH - Free Report) reported second-quarter fiscal 2021 adjusted earnings of $1.74 per share (EPS), which surpassed the Zacks Consensus Estimate of $1.45 by 20%. The bottom line also improved 14.5% year over year.
Revenue Details
Revenues increased 4.5% on a year-over-year basis to $41.54 billion. The top line beat the Zacks Consensus Estimate by 0.01%.
Segmental Analysis
Pharmaceutical Segment
In the fiscal second quarter, pharmaceutical revenues rose 4.3% to $37.24 billion on a year-over-year basis. The upside can be attributed to growth in sales from Pharmaceutical Distribution and Specialty Solutions customers.
Cardinal Health, Inc. Price, Consensus and EPS Surprise
Cardinal Health, Inc. price-consensus-eps-surprise-chart | Cardinal Health, Inc. Quote
Pharmaceutical witnessed a decline of 10.6% in profits to $413 million due to decline in volume on account of the COVID-19 impact, particularly in the generics program and Nuclear and Precision Health Solutions business. However, increase in contribution from brand sales mix partially offset the downside.
Medical Segment
In the quarter under review, revenues at this segment increased 7.1% to $4.31 billion attributable to higher sales from personal protective equipment (PPE) and increase in volumes in its lab business. However, adverse impact of cancelled or deferred elective procedures partially offset the upside.
Medical segment profit improved 21% to $236 million, courtesy of net positive impact from COVID-19 and benefits from cost savings that include global manufacturing efficiencies.
Margin Analysis
Gross profit rose 3.6% year over year to $1.78 billion.
As a percentage of revenues, gross margin in the reported quarter was 4.3%, remaining flat on a year-over-year basis.
Distribution, selling, general and administrative expenses totaled $1.15 billion, down 1.4% year over year.
The company reported operating income of $461 million in the quarter under review, up 38% from the prior-year quarter. As a percentage of revenues, operating margin in the reported quarter was 1.1%, up 30 basis points (bps) from the year-ago quarter.
Financial Update
The company exited the quarter with cash and cash equivalents of $3.74 billion, compared with $2.75 billion on a sequential basis.
Net cash from operating activities totaled $1.22 billion at end of the fiscal second quarter, compared with $697 million in the year-ago quarter.
2021 Guidance Raised
The company anticipates adjusted earnings per share between $5.85 and $6.10 (up from the previously guided range of $5.65-$5.95). The Zacks Consensus Estimate is pegged at $5.82 per share.
Conclusion
Cardinal Health exited the fiscal second quarter on a strong note, wherein both earnings and revenues outpaced the consensus mark. The company witnessed revenue growth in both its segments in the quarter under review. Raised fiscal 2021 outlook is a positive.
Notably, the company inked a deal with the Centers for Disease Control and Prevention (CDC) to become a network administrator in Phase 2 of the Federal Pharmacy Partnership Strategy for COVID-19. Further, the Ohio Department of Health chose the Cardinal Health OptiFreight Logistics business to help in the distribution efforts of COVID-19 vaccines. These developments fuel optimism in the stock.
However, intense competition and customer concentration are other concerns. The company witnessed a decline in profit with respect to Pharmaceutical segment in the quarter under review due to COVID-19 induced volume declines.
Zacks Rank
Currently, Cardinal Health carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Hologic sports a Zacks Rank of 1 (Strong Buy), both Abbott and AngioDynamics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>