Cardinal Health posts 5% revenue growth in Q2
Cardinal Health on Thursday reported its second-quarter fiscal year 2020 earnings. The company's revenue for the period was $39.7 billion, a 5% hike from the same period last year.
For the quarter, the Dublin, Ohio-based company’s GAAP diluted earnings per share decreased 19% to 75 cents.
GAAP operating earnings for the quarter decreased 34% to $334 million, which included a $96 million charge in connection to recently announced voluntary surgical gown-related recalls.
“With the first half of the year behind us, we are raising our fiscal year 2020 guidance," Cardinal Health CEO Mike Kaufmann said. "This increase was driven by improved performance across our pharmaceutical segment, particularly within our generics program. As we look forward, we remain focused on executing our strategic growth initiatives."
Second-quarter revenue for the pharmaceutical segment was $35.7 billion, 6% greater than revenue in the same period last year. Pharmaceutical segment profit increased 4%, which Cardinal Health attributed to positive performance in the company’s generics program and specialty solutions business. This was partially offset by the adverse impact of pharmaceutical distribution customer contract renewals, the company said.
Second-quarter revenue for the medical segment was flat at $4 billion. Medical segment profit increased 4% to $195 million, driven by benefits from cost savings initiatives. This was partially offset by a decline in products and distribution, according to Cardinal Health.