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.
What's in Store for Cardinal Health (CAH) in Q3 Earnings?
Read MoreHide Full Article
Cardinal Health, Inc’s (CAH - Free Report) third-quarter fiscal 2018 results are scheduled for release on May 3, before the market opens. While results are likely to show a decline in the core Pharmaceutical segment, growth across other segments is likely to make up partially.
In the second quarter of fiscal 2018, the company reported adjusted earnings of $1.51 per share, up 12.7% from the prior-year quarter and also above the Zacks Consensus Estimate of $1.14. Revenues came in at $35.19 billion, up 6.1% on a year-over-year basis, outpacing the consensus estimate of $34.69 billion.
Notably, Cardinal Health has a negative average earnings surprise of 0.3% for the trailing four quarters.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.51, reflecting a decline of 1.3% year over year. The same for revenues is pinned at $33.58 billion, indicating growth of 5.5%.
In the last reported quarter, this segment accounted for an enormous 88.5% of the company’s revenues. Revenues in the segment came in at $31.15 billion, up 4.7% on a year-over-year basis.
The segment witnessed strong growth in the Specialty business and also gained a huge number of Pharmaceutical Distribution customers.
However, it saw a 4% drop in profits to $514 million, thanks to generic pharmaceutical pricing and the recent investments in Pharmaceutical IT platform and lackluster generics program performance. Per management, growth in the segment was further impeded by the expiration of a large mail order from Prime Therapeutics.
For the current quarter, the Zacks Consensus Estimate for revenues in at $29.63 billion, down 4.9% sequentially.
Other Factors at Play
Guidance Lifted
Considering the benefits from the slashed federal tax rate, Cardinal Health raised the fiscal 2018 outlook. The company expects adjusted earnings per share from continuing operations of $5.25-$5.50, as compared with the previous range of $4.85-$5.10.
Medical Segment
In the fiscal second quarter, this segment accounted for 11.5% of the company’s revenues. Revenues in the segment grew 18.6% to$4.04 billion, primarily driven by the Patient Recovery acquisition. Medical segment profits increased 38% to $220 million, courtesy of higher contributions from new and existing customers and acquisition of the Patient Recovery business.
For the current quarter, the Zacks Consensus Estimate for revenues of the segment is pegged at $4.07 billion, up 0.7%, sequentially.
Medical Gloves Unit
Cardinal Health offers a robust portfolio of medical gloves including surgical gloves, exam gloves and clean-room gloves. The company has been lately facing challenges in the exam-glove sub-segment. In the last reported quarter, commodity pricing and supply disruptions were major drags for the section.
For fiscal 2018, lower expectations for the Medical segment due a troubled exam-gloves segment raise concerns.
Our quantitative model does not conclusively predict an earnings beat for Cardinal Health this earnings season. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates.
Zacks ESP: The Earnings ESP for Cardinal Health is +0.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cardinal Health carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post beats this earnings season.
Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3.
Edwards Lifesciences (EW - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
What's in Store for Cardinal Health (CAH) in Q3 Earnings?
Cardinal Health, Inc’s (CAH - Free Report) third-quarter fiscal 2018 results are scheduled for release on May 3, before the market opens. While results are likely to show a decline in the core Pharmaceutical segment, growth across other segments is likely to make up partially.
In the second quarter of fiscal 2018, the company reported adjusted earnings of $1.51 per share, up 12.7% from the prior-year quarter and also above the Zacks Consensus Estimate of $1.14. Revenues came in at $35.19 billion, up 6.1% on a year-over-year basis, outpacing the consensus estimate of $34.69 billion.
Notably, Cardinal Health has a negative average earnings surprise of 0.3% for the trailing four quarters.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.51, reflecting a decline of 1.3% year over year. The same for revenues is pinned at $33.58 billion, indicating growth of 5.5%.
Cardinal Health, Inc. Price and EPS Surprise
Cardinal Health, Inc. Price and EPS Surprise | Cardinal Health, Inc. Quote
Let’s delve deeper.
Pharmaceutical Segment in Focus
In the last reported quarter, this segment accounted for an enormous 88.5% of the company’s revenues. Revenues in the segment came in at $31.15 billion, up 4.7% on a year-over-year basis.
The segment witnessed strong growth in the Specialty business and also gained a huge number of Pharmaceutical Distribution customers.
However, it saw a 4% drop in profits to $514 million, thanks to generic pharmaceutical pricing and the recent investments in Pharmaceutical IT platform and lackluster generics program performance. Per management, growth in the segment was further impeded by the expiration of a large mail order from Prime Therapeutics.
For the current quarter, the Zacks Consensus Estimate for revenues in at $29.63 billion, down 4.9% sequentially.
Other Factors at Play
Guidance Lifted
Considering the benefits from the slashed federal tax rate, Cardinal Health raised the fiscal 2018 outlook. The company expects adjusted earnings per share from continuing operations of $5.25-$5.50, as compared with the previous range of $4.85-$5.10.
Medical Segment
In the fiscal second quarter, this segment accounted for 11.5% of the company’s revenues. Revenues in the segment grew 18.6% to$4.04 billion, primarily driven by the Patient Recovery acquisition. Medical segment profits increased 38% to $220 million, courtesy of higher contributions from new and existing customers and acquisition of the Patient Recovery business.
For the current quarter, the Zacks Consensus Estimate for revenues of the segment is pegged at $4.07 billion, up 0.7%, sequentially.
Medical Gloves Unit
Cardinal Health offers a robust portfolio of medical gloves including surgical gloves, exam gloves and clean-room gloves. The company has been lately facing challenges in the exam-glove sub-segment. In the last reported quarter, commodity pricing and supply disruptions were major drags for the section.
For fiscal 2018, lower expectations for the Medical segment due a troubled exam-gloves segment raise concerns.
Our quantitative model does not conclusively predict an earnings beat for Cardinal Health this earnings season. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates.
Zacks ESP: The Earnings ESP for Cardinal Health is +0.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cardinal Health carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post beats this earnings season.
Stryker Corporation (SYK - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3.
Edwards Lifesciences (EW - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>