Cardinal Health Inc.'s (CAH) fiscal first-quarter earnings rose 25% as stronger margins and a tax benefit helped offset the impacts of weaker revenue.
The the drug wholesaler's board also authorized an additional $1 billion in stock repurchases. Chairman and Chief Executive George Barrett said the three-year buyback program reflected the company's strong operating cash flow and the strength of our balance sheet. The new authorization is in addition to the company's existing stock repurchase plan, which has $350 million remaining.
Cardinal lost its contract with pharmacy-benefits manager Express Scripts Holding Co. (ESRX) last year to rival AmerisourceBergen Corp. (ABC). Cardinal was dealt another blow in March when Walgreen Co. (WAG) and European drug giant Alliance Boots GmbH agreed to get their branded and generic pharmaceutical products from AmerisourceBergen.
In the latest quarter, Cardinal's pharmaceutical segment sales declined 7.2% to $21.8 billion driven by expiration of the Express Scripts and Walgreen contracts.
Medical segment revenue was up 13% driven by the early 2013 acquisition of medical-supplies provider AssuraMed.
Cardinal Health reported a profit of $339 million, or 99 cents a share, up from $271 million, or 79 cents a share, a year earlier. The latest period included a tax benefit of 18 cents. Excluding tax benefits, acquisition-related charges and other items, adjusted earnings from continuing operations were up at $1.10 from 81 cents. Revenue decreased 5.3% to $24.5 billion.
Analysts polled by Thomson Reuters recently expected per-share earnings of 86 cents and revenue of $22.76 billion.
Gross margin rose to 5.2% from 4.5%.
For the recently started fiscal year, the company narrowed its per-share earnings estimate to $3.62 to $3.72, from its previous estimate for per-share profit of $3.45 to $3.60.
Shares closed Wednesday at $55.68 and were inactive in recent premarket trading.
Write to Tess Stynes at email@example.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 31, 2013 08:45 ET (12:45 GMT)Copyright (c) 2013 Dow Jones & Company, Inc.
|Cardinal Health 1st-Quarter Profit Up 25% on Stronger Margins, Tax Benefit (2013/10/31)|
|RBC Raises Dividend, 1st-Quarter Profit Up 2% -- Update (2014/2/26)|
|RBC Raises Dividend, 1st-Quarter Profit Up 2% ()|
|Procter & Gamble 1st-Quarter Profit Up 7.6% as Sales Improve - Update ()|
|Procter & Gamble 1st-Quarter Profit Up 7.6% as Sales Improve (2013/10/25)|
|AutoZone 1st-Quarter Profit Up 7.2% on Continued Sales Growth ()|
|CVS Caremark 3rd-Quarter Profit Up 25% (2013/11/5)|
|CVS Caremark 3rd-Quarter Profit Up 25% on Revenue Growth, Legal-Settlement Gain (2013/11/5)|
|Paychex 1st-Quarter Profit Up 6.4% on Revenue Growth ()|
|Kellogg to Cut 7% of Workforce by 2017; 3rd-Quarter Profit Up 2.5% ()|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.