Cardinal Health Raises 2025 Profit Outlook Again, Helped By Strong Drug Distribution Business

 Friday, Cardinal Health Inc. (NYSE:CAH) reported first-quarter 2025 adjusted EPS of $1.88, up 9% year over year, beating the consensus of $1.62.

Sales decreased 4% to $52.28 billion, beating the consensus of $50.90 billion. Adjusted operating earnings increased 12% to $625 million.

First-quarter revenue for the Pharmaceutical and Specialty Solutions segment decreased by 5% to $48.0 billion. Excluding the customer contract expiration, revenue increased by 16%, driven by brand and specialty pharmaceutical sales growth from existing customers.

Pharmaceutical and Specialty Solutions segment profit increased 16% to $530 million, driven by a higher contribution from brand and specialty products, including the earlier seasonal launch of COVID-19 vaccine distribution and positive generics program performance.

The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty drugs, and OTC products and offers services for specialty pharmaceuticals, supporting both manufacturers and healthcare providers and pharmacy management services.

Revenue for the Global Medical Products and Distribution segment increased 3% to $3.1 billion, driven by volume growth from existing customers.

Global Medical Products and Distribution (GMPD) segment profit decreased to $8 million, primarily due to higher manufacturing and health and welfare costs, largely offset by improved net inflationary impacts, including mitigation initiatives and growth from existing customers.

GMPD segment manufactures, sources, and distributes Cardinal Health brand medical, surgical, and laboratory products, as well as distributes medical, surgical and laboratory products known as national brand products

“We began fiscal 2025 by delivering strong operational and financial performance, led by the Pharmaceutical and Specialty Solutions segment,” said Jason Hollar, CEO of Cardinal Health.

“The strength and resiliency of our largest and most significant business continues to shine, giving us confidence to raise our fiscal 2025 enterprise guidance only a quarter into the year,” Hollar added.

Outlook: Cardinal Health has raised its fiscal year 2025 outlook for adjusted EPS to $7.75-$7.90 from prior guidance of $7.55-$7.70 versus consensus of $7.63.

https://finance.yahoo.com/news/cardinal-health-raises-2025-profit-122520946.html