Cardinal Health posts revenue growth in Q1
Cardinal Health reported its first-quarter fiscal year 2020 revenue posting revenue gains amid pandemic-driven headwinds but posting an earnings loss for the quarter.
Cardinal Health's Q1 revenue totaled $39.1 billion, an increase of 5% from the same period last year. The Dublin, Ohio-based company posted a first-quarter operating loss of $624 million and a diluted loss per share of 86 cents.
"Our first-quarter results and improved outlook for the year demonstrate the resilience of our business model. We delivered strong performance in both segments due to progress against our growth initiatives and disciplined expense management," said Mike Kaufmann, Cardinal Health As we continue to navigate the pandemic, we remain focused on optimizing our core businesses and making strategic investments that create long-term value for our shareholders, customers, communities and employees," Cardinal Health CEO Mike Kaufmann said.
First-quarter revenue for the pharmaceutical segment was $35.1 billion, which was 5% greater than revenue in the same quarter last year, and was accompanied by a 1% increase in profit for the segment. Cardinal Health attributed the segment’s profit increase to a higher contribution from brand sales mix. As expected, segment profit growth, Cardinal Health said, was adversely affected by COVID-19-related volume declines.
First-quarter revenue for the medical segment increased by 1% to $4 billion. Medical segment profit increased 36% to $230 million, driven by cost savings, including global manufacturing efficiencies. The company estimates that COVID-19 had a minimal net impact on the segment's first quarter results, as the adverse effects of cancelled or deferred elective procedures were offset by the temporary reduction of certain costs and higher volumes in its lab business. Additionally, the impact of personal protective equipment cost increases was mostly mitigated through price increases the company said.
Cardinal Health is updating its fiscal year 2021 guidance range for non-GAAP diluted earnings per share to $5.65 to $5.95 from $5.25 to $5.65. This increased guidance range primarily reflects a combination of a lower-than-previously-expected net headwind related to COVID-19 and improved cost savings, the company said.