Cardinal Health reports Q4, full-year results for fiscal year 2021

Still facing the headwinds of the COVID-19 pandemic, Cardinal Health on Thursday reported fourth-quarter 2020 revenues of $42.6 billion, an increase of 16% from the same period last year. The Dublin, Ohio-based company saw its full-year revenue increase to $162.5 billion, a 6% hike from fiscal year 2020.

For the fourth quarter, operating earnings were $162 million, a decrease of 40% from the same period last year. Non-GAAP operating earnings decreased 28% to $320 million and Non-GAAP diluted EPS decreased 26% to $0.77 in the quarter.

For the fiscal year, GAAP operating earnings were $472 million and non-GAAP operating earnings decreased 5% to $2.3 billion. GAAP diluted EPS for fiscal year 2021 were $2.08, while non-GAAP diluted EPS were $5.57.

“We're disappointed with our fourth quarter results. Throughout the past year we have been taking action to drive performance, and we will continue to move forward with urgency," said Mike Kaufmann, CEO of Cardinal Health. "For example, we divested the Cordis business, extended our Red Oak Sourcing agreement with CVS Health, identified $250 million of additional cost savings opportunities and made important leadership changes. With the actions we've taken to date and our plans for fiscal year 2022, we feel confident in our strategy, and are encouraged by the tailwinds behind our growth areas and strong cash flow generation."

Fourth-quarter revenue for the pharmaceutical segment rose 15% to $38.3 billion, which Cardinal said was driven primarily by sales growth from large Pharmaceutical Distribution and Specialty Solutions customers. This increase also includes the favorable prior year comparison from reduced pharmaceutical demand related to COVID-19.

Pharmaceutical segment profit was flat at $358 million in the fourth quarter, which the company attributed to COVID-19-related volume recovery in the Nuclear and Precision Health Solutions business, This was offset by the adverse impact of Pharmaceutical Distribution customer contract renewals.

Fourth-quarter revenue for the medical segment increased by 23% 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 a recovery in elective procedure volumes and the positive pricing impact of PPE.

Cardinal Health posted a Medical segment loss of $63 million in the fourth quarter. The loss was due to an adverse impact from COVID-19. This was primarily due to an inventory reserve on certain PPE products, partially offset by a recovery in elective procedure volumes. Additionally, benefits from cost savings initiatives were offset by elevated supply chain costs, the company said.

Cardinal Health projects its fiscal year 2022 guidance range for non-GAAP diluted earnings per share to be in the range of $5.60 to $5.90.