Shares in Cardinal Health (NYSE:CAH) fell today after the medical device maker posted a 17.7% drop in profits in its 4th quarter and 9.6% drop for its fiscal year 2017 earnings results, despite topping expectations on Wall Street.
The Dublin, Ohio-based company posted profits of $274 million, or 86¢ per share, on sales of $33 billion for the 3 months ended June 30, seeing profits shrink 17.7% while sales grew 5.1% compared with the same period in the previous year.
After adjusting to exclude 1-time items, earnings per share were $1.31, ahead of the $1.24 consensus on Wall Street, where analysts were expecting to see revenue of $32.7 billion.
For the full fiscal year, Cardinal Health posted profits of $1.29 billion, or $4.03 per share, on sales of $130 billion, seeing its bottom-line shrink 9.6% while sales grew 6.9% compared to the previous fiscal year.
Adjusted to exclude 1-time items, earnings per share were $5.40, ahead of the $5.35 consensus on Wall Street, where analysts were expecting to see revenues of $130 billion.
Cardinal Health said that its medical segment reported revenues of $3.4 billion, growing 6% on the previous year, with $138 million in profits and a growth rate of 13%.
For the full fiscal year, the medical segment reported sales of $13.5 billion, growing 9% on the previous year, with $572 million in profits and a growth rate of 25%.
“While these last 12 months were clearly a dynamic period in healthcare and certainly presented challenges for our fiscal 17, it was also a year in which we took important actions to strengthen our market positioning, grow our scale, add new, long-term drivers of growth, and improve the overall balance of our integrated portfolio. In spite of the challenges of the year, our team was able to deliver growth in non-GAAP EPS,” chair & CEO George Barrett said in a prepared statement.
The company provided guidance for its upcoming fiscal year 2018, expecting to post non-GAAP earnings per share of between $4.85 and $5.10.
“As we indicated in our April early outlook, we expected our fiscal 2018 non-GAAP EPS to be down. Our perspective and operating expectations have not meaningfully changed. We are, however, taking some discrete actions, which will affect our EPS in FY18 and will improve our trajectory for 2019 and beyond. And we are targeting fiscal 2019 non-GAAP EPS of at least $5.60,” CEO Barrett said in a press release.
Cardinal Health shares have dropped in response, down 8.4% at $70.86 as of 10:29 a.m. EDT.
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