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Valued at around $24 billion by a market cap, Cardinal Health, Inc. (CAH) is a healthcare services and products company providing pharmaceutical and medical solutions globally. The Dublin, Ohio-based company is expected to unveil its fiscal Q4 earnings results before the market opens on Wednesday, Aug. 14.
Prior to the event, analysts anticipated the prescription drug distributor to report a profit of $1.72 per share, up around 11% from $1.55 per share in the same quarter last year. The company has consistently surpassed Wall Street's earnings projections over the last four quarters. CAH reported an EPS of $2.08 in Q3 2024, exceeding the consensus estimate by a 6.7% margin.
For fiscal 2024, analysts expect CAH to report EPS of $7.35, up 26.9% from $5.79 in fiscal 2023.
On a YTD basis, CAH's shares have dropped marginally, underperforming the broader S&P 500 Index's ($SPX) 14.5% gain and the S&P 500 Healthcare Sector SPDR's (XLV) 10% increase over the same period.
Cardinal Health’s stock rose marginally due to stronger-than-expected Q3 earnings on May 2 and an improved 2024 profit forecast driven by strong demand for specialty drugs, despite missing revenue estimates. However, the stock dropped roughly 4% because the preliminary fiscal year 2025 outlook was below analysts' expectations. This weaker future guidance overshadowed the positive quarterly results and led to a decline in the stock price.
Analysts' consensus rating on Cardinal Health stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, opinions include five "Strong Buys," one "Moderate Buy," eight "Holds," and one "Strong Sell." The average analyst price target for CAH is $112.36, suggesting a potential upside of 14.4% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
