• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
    • Cardiovascular
    • Orthopedics
  • Wall Street Beat
    • Funding Roundup
    • Mergers & Acquisitions
  • Podcasts & Webinars
    • Podcasts
    • Webinars
  • Resources
    • About MassDevice
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Whitepapers
  • DeviceTalks Tuesdays
  • Coronavirus: Live updates
Home » Cardinal Health OKs $1B share buyback after taking a hit on tightened guidance

Cardinal Health OKs $1B share buyback after taking a hit on tightened guidance

May 5, 2016 By Brad Perriello

Cardinal HealthCardinal Health (NYSE:CAH) said today that its board approved a $1 billion share buyback plan, after the company’s stock price took a hit last week after it tightened its earnings outlook for the rest of the year.

Dublin, Ohio-based Cardinal said the share repurchasing program, which is slated to end Dec. 31, 2019, is in addition to the $393 million still remaining from a prior buyback plan. Cardinal Health’s board also OK’d a 16% boost to its quarterly dividend to 44.89¢ per share.

CAH stock fell more than -9% April 28 after the company’s fiscal 3rd-quarter results prompted it to tighten its full-year guidance. Cardinal Health posted profits of $386 million, or $1.17 per share, on sales of $30.7 billion for the quarter, amounting to a 5.8% bottom-line gain on sales growth of 20.9% compared with Q3 2015.

Adjusted to exclude 1-time items, earnings per share were $1.43, a full dime ahead of Wall Street’s consensus forecast. Still, CAH shares closed down -9.3% at $78.51 apiece April 28, the day of the earnings release as investors reacted to the updated outlook. CFO Michael Kaufmann told analysts that Cardinal Health now expects to report adjusted EPS of $5.17 to $5.27 for fiscal 2016, implying 4th-quarter guidance of $1.07 to $1.17.

“We had a strong financial and operational performance in our fiscal 3rd quarter. At the same time, we continued to enhance and grow enterprise-wide service and product lines, which are important to our customers and address some of healthcare’s most difficult challenges,” chairman & CEO George Barrett said in prepared remarks. “We delivered double-digit growth in revenue and profit in both our pharmaceutical and medical reporting segments and had very solid performance across our lines of business.”

The buyback announcement had the desired effect, as CAH shares were up 1.6% to $78.72 today in mid-morning trading.

Cardinal Health said its medical business saw profits rise 25.5% to $128 million on sales growth of 10.7% to $3.1 billion, “due to the net contribution from acquisitions as well as solid growth from existing businesses.” The company closed its $1.94 billion buyout of Johnson & Johnson‘s (NYSE:JNJ)’s Cordis stent-making arm last October.

Filed Under: MassDevice Earnings Roundup, Wall Street Beat Tagged With: Cardinal Health

In case you missed it

  • Technical Brief – “Understanding the Extensive OEM Benefits of Total Linear Motion Solutions.”
  • Exactech launches total hip arthroplasty system
  • Lensar announces first patients treated with Ally adaptive cataract treatment
  • HeartBeam submits heart attack diagnostic platform for FDA 510(k) clearance
  • GE Healthcare leads AliveCor Series F funding for ECG tech
  • New FDA ruling may lower costs for over-the-counter hearing aids
  • Data supports Sight Sciences’ Omni surgical system for glaucoma
  • Integra founder Richard Caruso has died
  • Moximed raises $40M for implantable shock absorber for knee osteoarthritis
  • Philips names Roy Jakobs as CEO amid ventilator, CPAP recalls
  • Shareholder lawsuit over BD’s Alaris pumps recall moves forward
  • Dyad Medical wins FDA clearance for cardiac imaging platform Echo:Prio
  • Outset Medical wins national VA contract
  • Inspire Medical Systems appoints former Zimmer Biomet exec as VP of investor relations
  • Abbott will spend $450M to up FreeStyle Libre production in Ireland
  • Acutus Medical ticks up on revenue beat, missed EPS in Q2 results
  • ResMed expects steady growth over the next year

RSS From Medical Design & Outsourcing

  • What Laura Mauri learned from a ‘firestorm’ in her first months at Medtronic
    Dr. Laura Mauri faced a monumental moment with former Medtronic CEO Omar Ishrak shortly after she joined the company as VP of global clinical research and analytics. It was late 2018, and Mauri — who’s now an SVP and the chief scientific, medical and regulatory officer at Medtronic (NYSE: MDT) — was in a meeting… […]
  • Senators seek post-market FDA study of pulse oximeters and skin color
    Democratic U.S. senators are prodding the FDA to launch a post-market study of pulse oximeters due to unreliable performance for patients with dark skin. Pulse oximeters estimate blood oxygen levels (SpO2) and pulse rates in patients using infrared light — usually on a fingertip — at home or in clinical settings. Blood oxygenation is one… […]
  • TE Connectivity opens global medical device prototyping center in Ireland
    TE Connectivity (NYSE:TEL) today announced it opened its global Propelus Prototype Center for medical devices in Galway, Ireland. The $5 million rapid prototyping center was built into its existing manufacturing site in Galway and directly connects TE engineers with customers to reduce development time and increase speed to market for lifesaving and life-improving medical devices. Propelus… […]
  • Contract manufacturer Minnetronix Medical launches its first in-house product, MindsEye
    Minnetronix Medical has launched MindsEye, making it the first medical device that the contract developer and manufacturer has conceived and commercialized. St. Paul-based Minnetronix Medical’s MindsEye is the first expandable brain access port on the market. The FDA cleared the device under the 510(k) pathway in August 2020. The minimally invasive device gives neurosurgeons deep… […]
  • What’s next for Jennifer Fried after leaving Explorer Surgical?
    Explorer Surgical co-founder Jennifer Fried has resigned from the company after selling it to Global Healthcare Exchange in October. Fried announced her departure last week on LinkedIn, saying she’s preparing for her next professional chapter. “It’s bittersweet — I’m so proud of everything our team has built and accomplished,” Fried wrote. “The time has flown… […]
  • The 24 best medical device innovations of 2022
    The Galien Foundation recently announced its nominees of medical device innovations for its 2022 Prix Galien USA awards. There are 24 medical technologies nominated for the annual award this year, up from 18 nominees in 2021. The Galien Foundation’s annual Prix Galien awards highlight devices, biotechnology and pharmaceutical products designed to improve the human condition.… […]
  • FDA issues new COVID-19 testing guidance to avoid false negatives
    COVID-19 testing should be repeated following a negative result on any antigen test, the FDA said in a move that could increase demand for diagnostics manufacturers. The latest guidance from the federal health agency is for negative COVID-19 antigen test results regardless of the presence or absence of symptoms. The federal agency said recent studies… […]
  • Confluent Medical expands Costa Rica manufacturing footprint for nitinol, complex catheter production
    Confluent Medical Technologies this week announced the opening of its new addition to its Costa Rica manufacturing facility. The expansion adds 66,000 sq. ft to its large-scale manufacturing center of excellence in Alajuela, Costa Rica to expand Confluent’s capacity for nitinol component processing and complex catheter manufacturing. “Confluent has experienced consistent and strong growth in… […]
  • FDA’s breakthrough medical device designations tally nears 700
    Stewart Eisenhart, Emergo Group The US Food and Drug Administration has granted almost 700 designations over the past seven years under a voluntary program for expedited regulatory review of medical devices and combination products that facilitate more effective treatment or diagnosis of serious diseases. According to recent metrics published by FDA, the agency has issued a total of… […]
  • Lifecore Biomedical’s owner plans to go all-in on contract development and manufacturing
    Lifecore Biomedical parent company Landec Corp. (Nasdaq:LNDC) plans to take the subsidiary’s name, leadership and headquarters as its own and sell off food businesses to focus on contract development and manufacturing. Santa Maria, California-based Landec said it will rename itself as Lifecore Biomedical “in the near future” and change its Nasdaq ticker to LFCR. Landec… […]
  • COVID-19 immunity test developers at MIT seek diagnostic manufacturer
    MIT researchers have developed a device for predicting an individual’s COVID-19 immunity and are looking for a diagnostic company to get it manufactured in large numbers and approved by the FDA. The lateral flow test uses the same technology as at-home rapid antigen COVID-19 tests to measure neutralizing antibodies for SARS-CoV-2 in a blood sample,… […]

Primary Sidebar

DeviceTalks Weekly

August 12, 2022
DTW – Medtronic’s Mauri brings years of patient care to top clinical, regulatory, scientific post
See More >

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Need Medtech news in a minute?
We Deliver!

MassDevice Enewsletters get you caught up on all the mission critical news you need in med tech. Sign up today.

MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us
Add us on Facebook Follow us on Twitter Connect with us on LinkedIn Follow us on YouTube

Copyright © 2022 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Advertise | Privacy Policy