Cardinal Health posts 5% revenue growth in Q2

Cardinal Health on Friday reported its second-quarter revenue, which was $41.5 billion, an increase of 5% from the same period last year.

The Dublin, Ohio-based company posted second-quarter GAAP operating earnings of $461 million, an increase of 38% from the same period last year. GAAP diluted earnings per share were $2.13, compared to $.75 in the prior-year period. 

"As we collectively navigate the pandemic, we remain committed to supporting customers, patients, and communities around the world," said Mike Kaufmann, CEO of Cardinal Health. "Our second-quarter results demonstrate our resilient business model, strong fundamentals, and the adaptability of our dedicated employees. We remain focused on optimizing our core businesses, investing in key areas, and efficiently deploying capital to drive long-term, sustainable growth."

Second-quarter revenue for the pharmaceutical segment was $37.2 billion, which was 4% greater than revenue in the same quarter last year. Cardinal Health said the increase was  driven by sales growth from Pharmaceutical Distribution and Specialty Solutions customers.

Pharmaceutical segment profit was at $413 million in the second quarter, a decrease of 11%, which Cardinal attributed to the adverse impact of COVID-19-related volume declines, primarily in the company's generics program and Nuclear and Precision Health Solutions business. This was partially offset by a higher contribution from brand sales mix, Cardinal Health said.

Second-quarter revenue for the medical segment increased 7% to $4.3 billion. The company attributed the increase to a net positive impact from COVID-19. This increase was primarily due to the impact of personal protective equipment  sales and higher volumes in its lab business, partially offset by the adverse effects of cancelled or deferred elective procedures.

Medical segment profit increased 21% to $236 million in the quarter. Cardinal Health attributed the segment's increase to the net positive impact from COVID-19 and cost savings, which included global manufacturing efficiencies. The net positive impact from COVID-19 was primarily due to higher volumes in Cardinal’s Lab business and an increased contribution from PPE, partially offset by the adverse effects of cancelled or deferred elective procedures.

Cardinal Health raised its fiscal year 2021 guidance range for non-GAAP diluted EPS to $5.85 to $6.10, from the prior range of $5.65 to $5.95.