Cardinal Health posts 7% growth in Q2
Pharmaceuticals helped deliver growth in Cardinal Health’s second quarter. The Dublin, Ohio-based company on Thursday reported second-quarter fiscal year 2019 revenues of $37.7 billion, an increase of 7% from the same period last year.
For the quarter, the Dublin-Ohio based company’s GAAP diluted earnings per share decreased 72% to $0.93, while non-GAAP diluted EPS were $1.29.
“Overall, results this quarter came in ahead of our expectations led by the pharmaceutical segment,” Cardinal Health CEO Mike Kaufmann said. “We are making good progress on our strategic initiatives to drive future growth and are well-positioned to exceed our cost-savings targets for the enterprise. As a result, we are raising our guidance for the full fiscal year.”
Second quarter revenue for the pharmaceutical segment increased 8% to $33.7 billion due to sales growth from pharmaceutical and specialty distribution customers. This was partially offset by the divestiture of the company’s China distribution business, according to the company.
Segment profit for the quarter decreased 14% to $443 million primarily due to the negative impact from the company’s generics program performance, partially offset by specialty solutions performance, according to Cardinal Health.
Second-quarter revenue for the medical segment decreased 1%, which the company said was driven primarily by the divestitures of China distribution and naviHealth businesses, offset by growth from existing customers.
Medical segment profit decreased by 14%, to $188 million in the second quarter, driven by increased costs related to the performance of Cardinal Health-branded products, as well as the divestitures of the China distribution and naviHealth businesses. This was partially offset by the beneficial comparison to the prior-year fair value step-up of inventory acquired with the patient recovery business, the company said.
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