Cardinal Health’s medical segment helps drive Q2 earnings growth
Cardinal Health grew its revenue by 6% in its second quarter of fiscal year 2018. The Dublin, Ohio-based company’s earnings per share increased 226% to $3.33 following a quarter of growth in its medical business and a pharmaceutical distribution segment that exceeded expectations.
“Overall, we are very pleased with the quarter," CEO Mike Kaufmann said. "Our pharmaceutical distribution business performed better than expected, and we continue to see strong growth in Specialty Solutions. In the medical segment, the integration of the patient recovery business is progressing as planned, and we are excited by the opportunities in that business. In addition, we remain encouraged by how well our value proposition is resonating with customers.”
Total revenue for the quarter was $35.2 billion, with the company posting $1.1 billion in net earnings — a year-over-year increase of 225%. Pharmaceutical segment revenue was $31.1 billion, which despite being 5% greater than revenue in the same quarter last year, was accompanied by a 4% drop in profit for the segment. Cardinal Health attributed the segment’s profit decrease to its investment in its Pharmaceutical IT platform and the company’s generics program performance. The company’s specialty solution business offset these factors, it said.
The Cardinal Health medical segment brought in $4 billion in revenue — a 19% year-over-year increase — and was accompanied by a $220 million segment profit — a 38% increase. The company said that the revenue increase in its medical segment was driven largely by the acquisition of the Patient Recovery business.
“Overall, we are very pleased with the quarter," CEO Mike Kaufmann said. "Our pharmaceutical distribution business performed better than expected, and we continue to see strong growth in Specialty Solutions. In the medical segment, the integration of the patient recovery business is progressing as planned, and we are excited by the opportunities in that business. In addition, we remain encouraged by how well our value proposition is resonating with customers.”
Total revenue for the quarter was $35.2 billion, with the company posting $1.1 billion in net earnings — a year-over-year increase of 225%. Pharmaceutical segment revenue was $31.1 billion, which despite being 5% greater than revenue in the same quarter last year, was accompanied by a 4% drop in profit for the segment. Cardinal Health attributed the segment’s profit decrease to its investment in its Pharmaceutical IT platform and the company’s generics program performance. The company’s specialty solution business offset these factors, it said.
The Cardinal Health medical segment brought in $4 billion in revenue — a 19% year-over-year increase — and was accompanied by a $220 million segment profit — a 38% increase. The company said that the revenue increase in its medical segment was driven largely by the acquisition of the Patient Recovery business.