Cardinal Health increases guidance following strong Q1

DUBLIN, Ohio - Cardinal Health on Monday reported fiscal year 2016 first-quarter results, with revenue of $28.1 billion, an increase of 17%.

 

"We are off to a very strong start to our fiscal 2016," stated George Barrett, chairman and CEO Cardinal Health. "We reported outstanding progress on both the top and bottom lines, reflecting strong execution and alignment with the needs of our customers in an evolving market," he said. "Our Pharmaceutical segment continued its momentum into the first quarter, and the Medical segment strengthened its position in strategically critical areas. Subsequent to the quarter end, we closed the Cordis acquisition. Our team did an outstanding job meeting our expected timeline for closing, positioning us to strengthen our offerings in the interventional cardiovascular space and reinforce our physician preference product strategy."

 

First-quarter revenue for the Pharmaceutical segment increased 19% to $25.1 billion due to growth from existing and new customers and, to a lesser extent, contributions from acquisitions. Segment profit for the quarter increased 46% to $657 million due to strong performance under the company's generics program, net growth from existing and new customers and contribution from acquisitions.

 

Cardinal Health raised its fiscal 2016 non-GAAP diluted EPS guidance range to $5.15 to $5.35 from a prior range of $4.85 to $5.05. This new range represents an 18% to 22% growth rate compared to fiscal 2015."

 

Cardinal Health also completed its acquisition of Cordis, a leader in cardiology and endovascular devices, in the previous quarter, and acquired The Harvard Drug Group, a distributor of generic pharmaceuticals, over-the-counter medications and related products to retail, institutional and alternate care customers. In addition, Cardinal Health launched its Hospital Quality at Home brand, a new line of hospital-quality products available in the retail setting to help caregivers of patients who are transitioning care from the hospital to home.