DUBLIN, Ohio, Jan. 29, 2015 /PRNewswire/ -- Cardinal Health today reported fiscal year 2015 second-quarter revenue of $25.5 billion and non-GAAP diluted earnings per share (EPS) from continuing operations of $1.20. Non-GAAP operating earnings increased 10 percent to $639 million. Non-GAAP diluted EPS from continuing operations for the second quarter of fiscal year 2015 grew 33 percent; however, excluding a $0.16 tax charge in the second quarter of the prior fiscal year, the growth rate was 13 percent. On a GAAP basis, operating earnings increased 5 percent to $546 million, and diluted EPS from continuing operations increased 9 percent to $0.86.
“We’re pleased to report an excellent second quarter capping off a strong first half to our fiscal year,” said George Barrett, chairman and chief executive officer of Cardinal Health. “Overall, we posted strong revenue growth for the second quarter. Although we experienced some continued challenges in the Canadian market, we saw real progress in most of our business lines and customer channels. Most important, our organization continues to drive our key strategic priorities with focus on positioning us to create new value for our customers and patients in a time of great change.”
He continued, “Based on our performance in the first half of our fiscal year and our expectations for the second half, we are raising our guidance for full-year non-GAAP diluted EPS from continuing operations to a range of $4.28 to $4.38.”
Q2 FY15 SUMMARY | |||
Q2 FY15 | Q2 FY14 | Y/Y | |
Revenue | $25.5 billion | $22.2 billion | 15% |
Operating Earnings | $546 million | $519 million | 5% |
Non-GAAP Operating Earnings | $639 million | $579 million | 10% |
Earnings from Continuing Operations | $289 million | $275 million | 5% |
Non-GAAP Earnings from Continuing Operations | $400 million | $313 million | 28% |
Diluted EPS from Continuing Operations | $0.86 | $0.79 | 9% |
Non-GAAP Diluted EPS from Continuing Operations | $1.20 | $0.90 | 33% |
As previously disclosed, both GAAP and non-GAAP earnings from continuing operations and diluted EPS from continuing operations for second quarter of prior fiscal year reflected a tax charge of $56 million, or $0.16 per share, based on proposed assessments of additional tax.
SEGMENT RESULTS
Pharmaceutical segment
Revenue for the Pharmaceutical segment increased 16 percent to $22.6 billion due to growth in the base of existing customers as well as the impact of new customers. Segment profit increased 12 percent to $542 million, driven by strong performance under generic programs, which includes the net benefit of Red Oak Sourcing, as well as continued growth from existing customers and growth from new customers.
Q2 FY15 | Q2 FY14 | Y/Y | |
Revenue | $22.6 billion | $19.4 billion | 16% |
Segment Profit | $542 million | $482 million | 12% |
Medical segment
Revenue for the Medical segment was up 4 percent to $2.9 billion, driven by acquisitions and growth from existing customers. Segment profit decreased 12 percent to $115 million due to the year-over-year increase in enterprise-wide incentive compensation as well as the continued impact of market pressures in Canada and the related repositioning of that business.
Q2 FY15 | Q2 FY14 | Y/Y | |
Revenue | $2.9 billion | $2.8 billion | 4% |
Segment Profit | $115 million | $131 million | (12)% |
ADDITIONAL SECOND-QUARTER AND RECENT HIGHLIGHTS
- Returned $438 million to shareholders through stock repurchases and dividends in the second quarter of fiscal year 2015
- Redeemed approximately $1.2 billion of outstanding debt and issued senior notes for a comparable amount at lower interest rates and longer maturities
- Entered into a long-term strategic agreement with Henry Schein, the world’s largest provider of health care products and services to office-based dental, animal health and medical practitioners, to provide one of the most comprehensive service and product offerings to office-based medical practices
- Announced 15-year agreement with Bayer HealthCare for the contract manufacturing of Xofigo® (radium Ra 223 dichloride), an alpha-particle-emitting radioactive therapeutic agent for the treatment of patients with castration-resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease
CONFERENCE CALL
Cardinal Health will host a webcast and conference call today at 8:30 a.m. Eastern to discuss the results. To access the call and corresponding slide presentation, visit ir.cardinalhealth.com, or dial 719.234.0008, using conference ID# 7777110. There is no access code required for the call.
There is no pre-registration for the call. Participants are advised to dial into the call at least 10 minutes prior to the start time.
To read full press release, please click here.
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