The Dublin, Ohio-based company posted profits of $255 million, or 81¢ per share, on sales of $33.6 billion for the three months ended March 31, seeing the bottom-line shrink 33.1% while sales grew by 5.7% compared with the same period during the previous fiscal year.
Adjusted to exclude one-time items, earnings per share were $1.39, just behind the $1.51 consensus on Wall Street, where analysts expected to see sales of $33.5 billion, which the company topped.
“Our non-GAAP operating earnings came in largely as expected this quarter. However, our non-GAAP EPS was adversely affected by a significant negative change in our effective tax rate primarily associated with our Cordis business. Our team is moving aggressively to address our operational and supply chain issues at Cordis. Under the leadership of our new Medical Segment CEO, Jon Giacomin, we are implementing a series of initiatives to improve those operations and drive greater efficiencies. While these initiatives will take some time, we remain confident in the potential of this business and the value it provides to cardiovascular patients. We have an exceptional portfolio of assets, a tremendously talented and dedicated organization, and a critical position in the delivery of global healthcare. We look forward to building on this incredibly strong foundation to drive future performance and increase value for our shareholders,” CEO Mike Kaufmann said in a press release.
Cardinal Health significantly lowered its fiscal year 2018 non-GAAP EPS outlook, down from between $5.25 and $5.50 to between $4.85 and $4.95.
Shares in Cardinal Health have fallen 18.9% today, at $52.45 as of 3:03 p.m. EDT.