Cardinal Health reports flat revenue in Q3 amid pandemic headwinds
Cardinal Health on Thursday reported its third-quarter fiscal year 2021 revenue was flat, while posting an earnings loss for the quarter.
Cardinal Health's Q3 revenue totaled $39.3 billion, in-line with the same period last year. The Dublin, Ohio-based company's earnings for the quarter decreased to $473 million, and diluted loss per share decreased to 40 cents.
"We remain focused on serving our customers and their patients and continue to advance our strategic priorities," said Mike Kaufmann, CEO of Cardinal Health. "With our resilient business model and strong fundamentals, we are navigating the effects of the pandemic and finding opportunities to adapt, innovate and invest for future growth."
Third-quarter revenue for the pharmaceutical segment was flat at $35.1 billion, which Cardinal said reflects sales growth from pharmaceutical distribution and specialty solutions customers in the current period compared against the unfavorable prior-year comparison of the COVID-19-related acceleration in overall pharmaceutical sales.
Pharmaceutical segment profit decreased 4% to $511 million in the third quarter. The company attributed the decrease primarily due to COVID-19-related volume declines in the company's generics program. This was partially offset by a higher contribution from brand sales mix.
Third-quarter revenue for the medical segment increased by 3% to $4.2 billion. The increase was driven by a net positive impact from COVID-19 on products and distribution. This increase was primarily due to the impact of personal protective equipment sales and higher volumes in the company’s lab business, partially offset by the adverse effects of reduced elective procedures.
Medical segment profit decreased 2% to $174 million in the third quarter. Cost savings, including global manufacturing efficiencies, were offset by a decline in products and distribution. Additionally, the segment experienced a slight negative impact due to COVID-19, Cardinal Health said.
Cardinal Health is updating its fiscal year 2021 guidance range for non-GAAP diluted earnings per share to $5.90 to $6.05, from the prior range of $5.85 to $6.10.