Cardinal Health Lifts Outlook Again as Revenue Rises

Cardinal Health raised its full-year adjusted earnings outlook to $10.70-$10.80 a share after strong fiscal third-quarter results. Cardinal Health CAH -1.36%decrease; red down pointing triangle once again raised its full-year outlook after logging higher-than-expected adjusted earnings and a jump in revenue during its fiscal third quarter. The Dublin, Ohio, company -- which distributes pharmaceutical and medical supplies and provides healthcare services and solutions -- now expects adjusted earnings of $10.70 to $10.80 a share for the year. That compares with a prior forecast of $10.15 to $10.35 a share. Analysts polled by FactSet are looking for adjusted earnings of $10.32 a share for the year. Chief Executive Jason Hollar said Cardinal Health's latest quarterly results extended momentum, and that continually strong performance across multiple end markets gave the company confidence to again raise its outlook. The company last lifted its adjusted earnings outlook during its fiscal second-quarter report in February. For its three months ended March 31, Cardinal Health posted a profit of $399 million, or $1.69 a share, down from $506 million, or $2.10 a share, a year earlier. The recent quarter included a $184 million pretax goodwill impairment charge that dragged on earnings. Stripping out one-time items, earnings were $3.17 a share. Analysts polled by FactSet expected adjusted earnings of $2.79 a share. Quarterly revenue climbed 11% to $60.94 billion but came in below Wall Street models for $62.1 billion. Revenue in Cardinal Health's pharmaceutical and specialty-solutions business increased 11% to $56.1 billion, driven by brand and specialty pharmaceutical sales growth from existing customers, the company said. Meanwhile, revenue in its global medical products and distribution was generally flat from last year, as lower distribution volumes were offset by Cardinal Health brand growth.