Cardinal Health reports hike in Q4 revenue
Cardinal Health reported fourth quarter fiscal year 2024 revenues of $59.9 billion, an increase of 12% from the prior year. GAAP operating earnings were $401 million and GAAP diluted earnings per share were 96 cents.
The Dublin, Ohio-based company's non-GAAP operating earnings increased 14% to $605 million, driven primarily by segment profit increases in global medical products and distribution and pharmaceutical and specialty solutions. Non-GAAP diluted EPS increased 29% to $1.84 in the quarter, reflecting the increase in non-GAAP operating earnings across the business, lower interest and other expense, a lower non-GAAP effective tax rate and a lower share count.
Fiscal year 2024 revenues were $226.8 billion, an 11% increase from fiscal year 2023. GAAP operating earnings were $1.2 billion and GAAP diluted EPS was $3.45. Non-GAAP operating earnings increased 16% to $2.4 billion, driven primarily by segment profit increases in GMPD and pharmaceutical and specialty solutions. Non-GAAP diluted EPS increased 29% to $7.53 for the year, reflecting the increase in non-GAAP operating earnings across the business, lower interest and other expense, a lower non-GAAP effective tax rate and a lower share count following in-year share repurchases.
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"Fiscal 2024 marked a year of strong operational execution and record financial results, delivered in tandem with key strategic progress in the portfolio," said Jason Hollar, CEO of Cardinal Health. "We delivered robust cash flow generation, continued profit growth in the pharmaceutical and specialty solutions segment and significant improvement driven by our GMPD Improvement Plan. We enter the new fiscal year with momentum and confidence, evidenced by our raised fiscal year 2025 guidance."
Fourth-quarter revenue for the pharmaceutical and specialty solutions segment increased 13% to $55.6 billion, driven by brand and specialty pharmaceutical sales growth from existing customers, Cardinal Health said.
Cardinal Health's pharmaceutical and specialty solutions segment profit increased 8% to $482 million in the fourth quarter, primarily driven by positive generics program performance. The fourth-quarter revenue for the global medical products and distribution segment increased by 2% to $3.1 billion, driven by volume growth from existing customers.
The company’s global medical products and distribution segment profit increased by $40 million to $47 million in the fourth quarter, driven by an improvement in net inflationary impacts, including mitigation initiatives.
Fourth-quarter revenue for others increased 15% to $1.2 billion, driven by growth across the three operating segments: at-home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics.
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Other segment profit increased 11% to $111 million, primarily driven by the performance of OptiFreight Logistics.
As a result, the company raised its fiscal year 2025 outlook for non-GAAP diluted EPS to $7.55 to $7.70 from the preliminary outlook of at least $7.50 previously communicated during the third-quarter fiscal year 2024 earnings release. In addition, Cardinal Health also updated its pharmaceutical and specialty solutions segment profit growth outlook to 1% to 3% growth, from at least 1% growth, as well as improved its fiscal year 2025 outlooks for interest and other, diluted weighted average shares outstanding and share repurchases.