Cardinal Health Inc

CAH: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$65.00	Gtvplf	Rgtynhjwx

Cardinal Health Earnings: Sales Growth Starts to Slow but Margin Comes Through

Keonhee Kim

May 2, 2024

Narrow-moat Cardinal Health reported third-quarter earnings that came in largely as we expected. Total sales of $54.9 billion was up 8.8% year over year thanks to stable utilization prescription trend and strong execution. All three segments posting a sequential margin improvement was also a nice surprise. After adjusting our 2024 and 2025 assumptions and baking in time value of money, we raise our fair value estimate to $92 per share from $88.

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