Benzinga - by Vandana Singh, Benzinga Editor.
Cardinal Health Inc (NYSE:CAH) reported second-quarter FY24 adjusted EPS of $1.82, up 38% Y/Y, beating the consensus of $1.60.
Sales increased 12% to $57.45 billion, beating the consensus of $57.01 billion.
The second-quarter revenue for the pharmaceutical segment increased 12% to $53.5 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.
The Medical segment increased by 3% to $3.9 billion, driven by growth in at-home Solutions and Global Medical Products and Distribution, primarily reflecting higher Cardinal Health Brand volumes.
As announced earlier, the company completed a review of growth businesses within the Medical Segment, including investing in and further developing at-home Solutions and OptiFreight Logistics.
Wednesday, Cardinal Health agreed to acquire Specialty Networks, a technology-enabled multi-specialty group purchasing and practice enhancement organization, for $1.2 billion in cash.
The transaction creates increased clinical and economic value for 11,500 specialty providers, including over 7,000 physicians across 1,200 independent physician practices.
The deal creates a platform for Cardinal Health’s expansion across specialty therapeutic areas.
Outlook: Cardinal Health raised its FY24 adjusted EPS guidance to $7.20-$7.35 from prior guidance of $6.75-$7.00 versus consensus of $6.96.
The company forecasts 2024 Pharmaceutical and Specialty Solutions sales growth of 10%-12% from 2023 sales of $188 billion.
The company expects GMPD segment sales growth of around 2% Y/Y from 2023 at around $12.1 billion.
Price Action: CAH shares are down 4.30% at $104.49 on the last check Thursday.
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