Cardinal Health Reports Second-Quarter Results For Fiscal 2016
DUBLIN, Ohio, Feb. 1, 2016 /PRNewswire/ -- Cardinal Health today reported fiscal year 2016 second-quarter results, with revenue of $31.4 billion, an increase of 23 percent, and non-GAAP operating earnings of $726 million, an increase of 14 percent. Non-GAAP diluted earnings per share (EPS) increased 8 percent to $1.30. On a GAAP basis, operating earnings increased 3 percent to $563 million, and diluted EPS increased 14 percent to $0.98.
"Our performance in the second quarter of our fiscal 2016 reflects our deep commitment to serving a health system experiencing powerful changes," said George Barrett, chairman and chief executive officer of Cardinal Health. "We achieved strong revenue and operating growth. Both of our reporting segments continue to demonstrate very solid fundamentals and growth in our base of customers. Our organization continues to demonstrate discipline in executing on our priorities while strategically positioning us for the future."
Barrett noted that the company was reaffirming its fiscal 2016 non-GAAP diluted earnings per share guidance of $5.15 to $5.35, representing an 18 to 22 percent growth rate compared to fiscal 2015.
Q2 FY16 SUMMARY
Q2 FY16 | Q2 FY15 | Y/Y | |
Revenue | $31.4 billion | $25.5 billion | 23% |
Operating Earnings |
$563 million |
$546 million |
3% |
Non-GAAP Operating Earnings |
$726 million |
$639 million |
14% |
Net Earnings attributable to Cardinal Health, Inc. |
$326 million |
$289 million |
13% |
Non-GAAP Net Earnings attributable to Cardinal Health, Inc. |
$430 million |
$400 million |
7% |
Diluted EPS attributable to Cardinal Health, Inc. | $0.98 | $0.86 | 14% |
Non-GAAP Diluted EPS attributable to Cardinal Health, Inc. |
$1.30 |
$1.20 |
8% |
SEGMENT RESULTS
Pharmaceutical segment
Second-quarter revenue for the Pharmaceutical segment increased 25 percent to $28.3 billion.
Segment profit for the quarter increased 16 percent to $627 million. The drivers for both segment revenue and profit were growth from existing and new customers as well as acquisitions.
Q2 FY16 | Q2 FY15 | Y/Y | |
Revenue | $28.3 billion | $22.6 billion | 25% |
Segment Profit | $627 million | $542 million | 16% |
Medical segment
Second-quarter revenue for the Medical segment increased 9 percent to $3.2 billion. This growth was primarily due to the net contribution from acquisitions and growth in the Cardinal Health at Home platform.
Segment profit declined 8 percent to $106 million. This includes the impact of the Cordis-related inventory fair value step-up. Excluding the step-up of $21 million, year-over-year Medical segment profit growth was 10 percent.
Q2 FY16 | Q2 FY15 | Y/Y | |
Revenue | $3.2 billion | $2.9 billion | 9% |
Segment Profit | $106 million | $115 million | (8)% |
ADDITIONAL SECOND-QUARTER AND RECENT HIGHLIGHTS
- Completed acquisition of Cordis and launched combined Interventional Solutions portfolio at 27th annual Transcatheter Cardiovascular Therapeutics conference
- Supported expansion of naviHealth presence in post-acute care with acquisition of RightCare Solutions Inc.
- Opened the Generation Rx Medication Disposal Grant Program application period to non-profit organizations throughout the U.S. and Puerto Rico to help support education and awareness of community drug disposal programs
- Named among 2016 Best Companies for Leaders by Chief Executive magazine
- Ranked among the Most LGBT-Inclusive Places to Work in 2016 and earned a perfect score on the 2016 Corporate Equality Index for the eighth consecutive year
CONFERENCE CALL
Cardinal Health will host a webcast and conference call today at 8:30 a.m. Eastern to discuss second-quarter results. To access the call and corresponding slide presentation, go to ir.cardinalhealth.com. Alternatively, participants can call 913.905.3226 and use passcode 852145.
There is no pre-registration for the call.
To read full press release, please click here.