Cardinal Health posts 11% revenue growth in Q3
Cardinal Health on Monday reported its third-quarter revenue, which was $39.2 billion, an increase of 11% from the same period last year.
The Dublin, Ohio-based company posted third-quarter GAAP operating earnings of $562 million, an increase of 30% from the same period last year.
For the quarter, the company’s non-GAAP operating earnings increased 8% to $719 million. GAAP diluted earnings per share increased 20% to $1.19, while non-GAAP diluted earnings per share increased 2% to $1.62.
"I want to express my gratitude to our employees and our partners across the healthcare industry for their incredible efforts to help us perform our critical role in the supply chain during this unprecedented time," said Mike Kaufmann, Cardinal Health CEO. "We remain committed to delivering products and solutions to front-line health care providers so they can safely serve and treat patients around the world. As we look toward and beyond the fourth quarter, we will continue to take strategic actions to fulfill this mission."
Third-quarter revenue for the pharmaceutical segment was $35.1 billion, which was 12% greater than revenue in the same quarter last year, which Cardinal Health attributed to growth from pharmaceutical distribution customers and, to a lesser extent, specialty solutions customers. Cardinal said this growth included an acceleration in overall pharmaceutical sales in March, which the company said was due to the COVID-19 pandemic.
Pharmaceutical segment profit was flat at $534 million in the third quarter, which Cardinal attributed to strong performance in the company's generics program and the adverse impact of pharmaceutical distribution customer contract renewals.
Third-quarter revenue for the medical segment increased 5% to $4.1 billion. The company attributed the increase to growth in products and distribution and Cardinal Health at Home.
Medical segment profit increased 15% to $178 million in the quarter. Cardinal Health attributed the segment's increase due to an increase in products and distribution, including benefits from global manufacturing and cost savings initiatives.
Cardinal Health reaffirmed its fiscal year 2020 guidance range for non-GAAP diluted EPS of $5.20 to $5.40.