Cardinal Health is sharing its financial update for its second quarter.
The company reported that its second-quarter fiscal 2022 revenues increased while updating its full-year non-GAAP earnings per share guidance.
Cardinal Health’s Q2 revenue totaled $45.5 billion, an increase of 9% from the same period last year.
The Dublin, Ohio-based company’s second-quarter GAAP operating loss was $950 million, which the company attributed to a non-cash, pre-tax goodwill impairment of $1.3 billion related to the medical segment.
GAAP diluted earnings per share were 17 cents, which the company said was primarily due to this impairment, net of tax effects. Second-quarter non-GAAP operating earnings decreased 26% to $467 million and non-GAAP diluted earnings per share decreased 27% to $1.27, primarily due to inflationary impacts and global supply chain constraints in the medical segment.
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"Consistent with our January update, we continue to experience significant inflationary impacts and global supply chain constraints in our US Medical Products and Distribution business. We're taking action to drive performance in the Medical segment, including evolving our commercial contracting strategies and driving mix, simplifying our operating model, and investing in our growth businesses," said Mike Kaufmann, CEO of Cardinal Health. "Our second quarter results demonstrate continued performance in other areas, including: growth in the Pharma segment, progress towards our $750 million enterprise cost savings target, strong cash flow generation, and efficient capital deployment."
Second-quarter revenue for the pharmaceutical segment increased 11% to $41.4 billion, which the company attributed to branded pharmaceutical sales growth from large pharmaceutical distribution and specialty customers.
Pharmaceutical segment profit increased 3% to $426 million in the second quarter which the company said was driven by generics program performance. This was partially offset by investments in technology enhancements and higher operations expenses Cardinal Health said.
Cardinal Health is updating its fiscal year 2022 guidance range for non-GAAP diluted earnings per share to $5.15 to $5.50, from the prior range of $5.60 to $5.90.