Cardinal Health beats Q1 revenue, adjusted EPS estimates, raises outlook

Overview

• US pharmaceutical distributor's fiscal Q1 revenue rose 5%, beating analyst expectations

• Adjusted EPS for fiscal Q1 rose 28%, beating analyst expectations

• Company raised fiscal 2027 non-GAAP EPS guidance

Outlook

• Cardinal Health raises FY27 non-GAAP EPS guidance to $12.80-$13.00, from $12.40-$12.60

• Company now expects Pharmaceutical and Specialty Solutions profit growth of 10%-12%, up from 8%-11%

• Company lowers FY27 non-GAAP effective tax rate outlook to 18.5%-19.5%, from 19.0%-20.0%

Result Drivers

• PHARMACEUTICAL SALES - Revenue growth in Pharmaceutical and Specialty Solutions segment was driven by increased brand and specialty pharmaceutical sales from existing customers

• GENERIC PROGRAM PERFORMANCE - Pharmaceutical and Specialty Solutions segment profit rose 17%, primarily due to contributions from brand and specialty products and positive generics program performance

• LOWER TAX RATE AND SHARE COUNT - Adjusted EPS increase reflected higher non-GAAP operating earnings, a lower share count, and a lower effective tax rate

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Cardinal Health, Inc. is $280.00, about 6.9% above its November 4 closing price of $261.93

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

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• Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)