Cardinal Health's first-quarter medical profit, sales up

Headline results for the first quarter:

Revenue

$3.8 billion

+2%

Profit

$135 million

+5%

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"We are pleased that the first quarter provided a solid start to fiscal year 2019," remarked CEO Mike Kaufmann, adding "operating performance came in as expected, and we are on track in executing on our strategic initiatives to deliver increased value to our shareholders, our customers and their patients."

In the medical segment, Cardinal Health said sales growth "was driven primarily by new and existing customers," while the increase in profit "was due to the beneficial comparison to the prior-year fair value step-up of inventory acquired with the patient recovery business. This was partially offset by increased costs related to Cardinal Health brand products, including Cordis."

Other results:

  • Overall first-quarter revenue: $35.2 billion, up 8 percent, above forecasts of $33.7 billion
  • Overall first-quarter profit: $593 million,  up 416 percent

Looking ahead:

For fiscal year 2019, the company reaffirmed its earnings per share guidance range of $4.90 to $5.15. Analysts forecast annual earnings of $4.99 per share. Cardinal Health added that in the medical division, full-year sales are expected to show low-single digit percentage growth, with profit up by a mid to high-single digit percentage.

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