Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Vandana Singh

Cardinal Health's Q4 Earnings Hit By Inflationary Impacts, Supply Chain Constraints; Lowers FY22 Outlook

Cardinal Health (NYSE:CAH) has reported Q2 FY22 adjusted EPS of $1.27, down 27% Y/Y, beating the Street estimate of $1.23.

  • Earnings declined primarily due to inflationary impacts and global supply chain constraints in the Medical segment.
  • Q2 sales increased 9% Y/Y to $45.5 billion, missing the consensus estimate of $45.57 billion.
  • Related: Cardinal Health Expects Inflationary Impact, Supply Chain Constraints To Hit Volumes In FY22.
  • The pharmaceutical segment increased 11% to $41.4 billion, driven primarily by branded pharmaceutical sales growth from large Pharmaceutical Distribution and Specialty customers.
  • The medical segment sales decreased 5% to $4.1 billion, primarily due to Cordis's divestiture.
  • Outlook: For FY22, Cardinal Health revised adjusted EPS guidance to $5.15 - $5.50, down from the previous guidance of $5.60 - $5.90, compared to the consensus of $5.37.
  • The guidance reflects the previously announced additional $150 million - $175 million impacts from increased inflation and global supply chain constraints and a lower-than-expected offset from pricing actions. 
  • The Company has updated the Medical segment profit outlook of 30 - 45% decline, from mid-single to low-double-digit percentage decline.
  • Price Action: CAH shares are down 1.51% at $50.82 during the premarket session on the last check Thursday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.