Cardinal quarterly revenue down 7%, earnings-per-share up 15%

DUBLIN, Ohio — Cardinal Health on Tuesday posted $25.2 billion in revenue for its 2013 second quarter, down 7%. The company's non-GAAP diluted earnings per share was up 15% to $0.93. 

"We've now completed a strong first half to our fiscal 2013 with a good second-quarter performance. While continued brand-to-generic conversions and the previously announced movement of the Express Scripts contract drove a revenue decline in the pharmaceutical segment, excellent performance from our generic programs and new customer wins fueled profit gains," stated George Barrett, chairman and CEO Cardinal Health. 

Revenue for the pharmaceutical segment decreased 8% to $22.7 billion due to the previously announced non-renewal of the Express Scripts contract as well as expected conversions from branded pharmaceuticals to lower-priced generics. The decline was partially offset by revenues from new pharmaceutical distribution customers. Segment profit increased 12% to $441 million, largely from overall strong performance from generics programs and benefits of customer and product mix within pharmaceutical distribution, partially offset by the impact of continued market softness in our nuclear business.

In addition, the company tightened its fiscal 2013 outlook for non-GAAP diluted EPS from continuing operations to $3.42 to $3.50, which represents the top half of the prior guidance range.

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