Cardinal Health (NYSE:CAH) shares dipped slightly on second-quarter results that topped the consensus forecast.
The Dublin, Ohio-based company posted profits of $629 million, or $2.13 per share, on sales of $41.5 billion for the three months ended Dec. 31, 2020, for a more-than doubled bottom-line on sales growth of 4.5%.
Adjusted to exclude one-time items, earnings per share were $1.74, 30¢ ahead of Wall Street, where analysts were looking for sales of $41.4 billion.
Cardinal Health’s medical segment saw a 7% year-over-year revenue increase to $4.3 billion, resulting in a $236 million profit — a 21% gain from Q2 2020. The increases were attributed to the impact of personal protective equipment (PPE) sales and higher volumes for the companies lab business, both related to the COVID-19 pandemic.
However, some gains were partially offset by the adverse effects of canceled or deferred elective procedures because of the pandemic, according to a news release.
“As we collectively navigate the pandemic, we remain committed to supporting customers, patients, and communities around the world,” Cardinal Health CEO Mike Kaufmann said in the release. “Our second-quarter results demonstrate our resilient business model, strong fundamentals, and the adaptability of our dedicated employees. We remain focused on optimizing our core businesses, investing in key areas, and efficiently deploying capital to drive long-term, sustainable growth.”
Cardinal Health said it now expects to log 2021 adjusted EPS of $5.85 to $6.10, compared with $5.65 to $5.95 previously.
CAH shares were down -0.7% at $55.64 per share in mid-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.7%.