Cardinal Health posts 7% growth in Q4

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Cardinal Health posts 7% growth in Q4

By Sandra Levy - 08/06/2018
Cardinal Health on Monday reported fourth-quarter fiscal year 2018 revenues of $35 billion, an increase of 7% from the same period last year. The Dublin, Ohio-based company saw its full-year revenue increase to $137 billion, a 5% hike from fiscal year 2017.

For the quarter, GAAP diluted earnings per share were a loss of $3.76, while non-GAAP diluted EPS were $1.01. GAAP diluted EPS for fiscal year 2018 were $0.81, and non-GAAP diluted EPS were $5.00.

"Fiscal ’18 was a challenging year, but we are making significant progress by taking decisive actions to drive growth, reduce costs and enhance profitability," CEO Mike Kaufmann said in a press statement. "We are on track, and Cardinal Health's best-in-class products and services continue to distinguish us with our customers and their patients."

Fourth-quarter revenue for the pharmaceutical segment increased 6% to $31 billion due to sales growth from pharmaceutical and specialty distribution customers. This was partially offset by the divestiture of the company's China distribution business and the expiration of a large, mail-order customer contract, both of which were previously announced, according to the company.

Segment profit for the quarter decreased 18% to $416 million primarily due to the negative impact from the company's generic program performance, according to Cardinal Health.

Fourth-quarter revenue for the medical segment increased 14% to $4 billion, which was driven primarily by the acquisition of the patient recovery business. Medical segment profit decreased by 17%, or $24 million, to $114 million in the fourth quarter driven by the performance of Cardinal Health Branded products, primarily Cordis, and compensation-related items. This was mostly offset by contributions from acquisitions, the company said.

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