Cardinal Health (NYSE: CAH) today posted second-quarter results that beat the overall consensus on Wall Street.
The Dublin, Ohio-based company reported losses of $130 million, or 50¢ per share, on sales of $51.5 billion for the three months ended December 31, 2022. Cardinal Health’s results swung to a loss versus the same quarter a year ago. During Q2 2022, it earned $49 million, or 17¢ per share.
Sales in the most recent quarter were up 13%.
Adjusted to exclude one-time items, earnings per share were $1.32, 18¢ ahead of The Street, where analysts were looking for sales of $50.74 billion.
“Our second quarter results demonstrate continued momentum against our plans, led by better-than-expected performance in the Pharmaceutical segment and Medical results in-line with our prior commentary,” CEO Jason Hollar said in a news release. “With the first half of fiscal year 2023 behind us, we are pleased to raise our full-year non-GAAP EPS guidance and outlook for the Pharmaceutical segment. In the Medical segment, we remain confident in our Medical Improvement Plan, including the actions we are taking to mitigate supply chain inflation and drive improved performance.”
The company updated its fiscal year 2023 guidance range for non-GAAP diluted earnings per share to $5.20 to $5.50 from its previous guidance of $5.04 to $5.40 apiece.
Medical segment posts sales and profit losses
Cardinal Health’s medical segment reported $3.8 billion in sales and $17 million in profits. Compared to Q2 2022, it had a sales loss of 7% and a profit loss of 66%.
The company said in a news release that the revenue loss was driven by lower products and distribution sales, including personal protective equipment pricing and volumes. However, it experienced growth in at-home solutions that partially offset the decline.
According to an SEC filing, Cardinal Health attributed medical profit losses to lower product and distribution volumes and net inflationary impacts, which were partially offset by an improvement in PPE margins.
Shares in CAH were up 1.14% to $76.57 apiece in late morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down more than 14%.