Cardinal Health, Inc. (CAH) recently announced plans to open a new state-of-the-art distribution center in Walton Hills, OH, to support its medical products and distribution business in the United States.The 249,000-square-foot facility will be more than 30% larger than its predecessor in Solon, OH and is expected to be fully operational by spring of 2025. This new center will integrate cutting-edge technology and automation, enhancing efficiency, storage capacity and the overall quality of service.Signific ...

New facility opening in Walton Hills demonstrates ongoing commitment to increase U.S. warehouse capacity and modernize operations  DUBLIN, Ohio, Aug. 21, 2024 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today its plans to open a new distribution center in Walton Hills, Ohio, supporting its U.S. Medical Products and Distribution business. The facility will integrate new technology solutions, deliver operational efficiencies, and provide expanded capacity in the Cleveland, Ohio area. With constructi ...

ab 14 August 2024 Global Research and Evidence Lab Cardinal Health Inc Wrap: Positive Financial and Strategic Updates To Start FY25; Upping PT to $125 (from $120) UBS View: Near-Term Optics Challenged By Optum Fallout But Don't Lose Sight of Big Picture The most important takeaways from the F4Q print are (1) manageable fallout from the Optum loss, (2) the underappreciated earnings power of new contract wins and existing business expansion, and (3) solid cash flow generation that provides relative operationa ...

Global Research and Evidence Lab 14 August 2024 Cardinal Health Inc. Caliendo's Conference Call Commentary ● General Takeaways: Management provided additional color underlying the improved FY25 Pharma EBIT outlook and steady FY25 GMPD EBIT guidance. Within Pharma, guidance calls for y/y EBIT improvement of +1-3% with consistent generic market dynamics, a greater contribution from brand/specialty products, a modest y/y headwind from COVID vaccine, and cost optimization. On GMPD, CAH did not seem overly conce ...

First Read Cardinal Health Inc First Take: Improved FY25 Guidance and LT Commitment to GMPD Conveyed Loaded Print: Improved FY25 Guide, Steady GMPD Outlook and More Aggressive Repos Should Buoy Sentiment Along with F4Q results, CAH tweaked preliminary FY25 financial expectations offered last quarter. Key guidance highlights include: (1) FY25 EPS range of $7.55-7.70 (prior: at least $7.50) on better Pharma EBIT growth of +1-3% ( prior: at least 1% - at midpoint adds ~$0.06); (2) lower interest and other (at ...

Financial Data and Key Metrics Changes - Cardinal Health reported a 29% growth in EPS for both Q4 and fiscal year 2024, with full-year EPS reaching $7.53, exceeding guidance by $0.96 [7][25] - The company generated nearly $4 billion in adjusted free cash flow for the year, ending with approximately $5 billion in cash after returning $1.25 billion to shareholders [7][25] - Revenue for fiscal year 2024 increased by 11% to $227 billion, with gross margin growing by 8% to $7.4 billion [24][25] Business Line Data and Key Metrics Changes - The pharmaceutical and specialty solutions segment saw a 13% revenue increase in Q4 to $55.6 billion, driven by brand and specialty pharmaceutical sales [20] - The GMPD segment's Q4 revenue grew by 2% to $3.1 billion, with segment profit of $47 million, reflecting ongoing improvement efforts [22] - Revenue from other businesses, including at-home solutions and OptiFreight, increased by 15% to $1.2 billion, with segment profit growing by 11% to $111 million [23] Market Data and Key Metrics Changes - The specialty business revenue grew by 14% for the year, now exceeding $36 billion, with expectations for continued growth despite a large contract expiration [9][10] - The generics program within the pharmaceutical segment showed strong performance, contributing to overall revenue growth [21] Company Strategy and Development Direction - Cardinal Health is focused on enhancing its pharmaceutical and specialty solutions, executing a GMPD improvement plan, and optimizing its portfolio for shareholder value creation [8][12] - The company is investing in key growth areas, including specialty networks and at-home solutions, while simplifying its business structure for better performance [9][12][45] - The strategic partnership with CVS Health for sourcing biosimilars aims to increase access to therapy options at lower costs [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and growth potential, supported by positive industry trends and strategic initiatives [11][34] - The company anticipates a decline in pharma revenue for fiscal year 2025 due to a large customer contract expiration but expects underlying growth from new customers and existing customer expansions [28][29] - Management highlighted the successful execution of cost control measures and inflation mitigation strategies, which are expected to provide a tailwind in the upcoming fiscal year [22][44] Other Important Information - Cardinal Health raised its share repurchase expectations for fiscal year 2025 to $750 million, reflecting a commitment to returning capital to shareholders [15][34] - The company identified a longstanding accounting error that resulted in slight net increases to non-GAAP EPS for prior periods [17] Q&A Session Summary Question: Insights on margin improvement for fiscal year 2025 - Management raised guidance for pharma business profitability, reflecting confidence in new customer contributions and cost mitigation efforts [51][52] Question: Impact of macro freight trends and input costs - Management noted that while there have been increases in freight costs, they are manageable and not at levels that require widespread price adjustments [56][57] Question: Underlying pharma growth and profit streams - Specialty is expected to continue growing, driven by investments and new customer acquisitions, despite the impact of a contract non-renewal [62][63] Question: Changes in guidance regarding Optum unwind - Management confirmed that the non-renewal will impact Q1, but cost optimization and new customer onboarding are already in play to mitigate effects [70][71] Question: Gross profit performance and insulin pricing changes - Management indicated that gross margin progression met expectations, with ongoing benefits from GLP-1 growth and some offsets from insulin pricing changes [74][75]

Key TakeawaysCardinal Health exceeded fourth-quarter earnings and revenue estimates on strong sales of pharmaceuticals.The healthcare firm raised its full-year profit guidance and revenue for its Pharmaceutical and Specialty Solutions unit.Cardinal Health also boosted its share buyback plan. Shares of Cardinal Health (CAH) gained in intraday trading Wednesday as the provider of healthcare services and products posted better-than-anticipated results and raised its outlook on strong drug sales. The company re ...

Cardinal Health, Inc. (CAH) reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.84, which beat the Zacks Consensus Estimate of $1.72 by 7%. The bottom line also improved 29% year over year.GAAP EPS in the quarter was 96 cents against a loss of 22 cents per share in the year-ago period.Revenue DetailsSales improved 12% on a year-over-year basis to $59.9 billion. The top line also beat the Zacks Consensus Estimate by 2%.Segmental AnalysisPharmaceutical and Specialty Solutions SegmentIn ...

Cardinal Health Inc (NYSE:CAH) stock is gapping higher on the charts today, after the company announced strong fiscal fourth-quarter results and raised its full-year guidance. Plus, the Ohio-based healthcare name raised its share repurchase expectations for fiscal 2025 to a total of $750 million. At last glance, CAH was up 3.6% at $106.31, earlier as high as $109. This positive price action has the stock flipping above the $105 level, which has provided pressure since April, as well as its 200-day moving av ...

For the quarter ended June 2024, Cardinal Health (CAH) reported revenue of $59.87 billion, up 12% over the same period last year. EPS came in at $1.84, compared to $1.55 in the year-ago quarter.The reported revenue represents a surprise of +1.95% over the Zacks Consensus Estimate of $58.72 billion. With the consensus EPS estimate being $1.72, the EPS surprise was +6.98%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...