Cardinal Health's stock dips premarket after company swings to a loss

Cardinal Health Inc.'s stock (CAH) slid 1% in premarket trade Tuesday, after the health services company swung to a loss for its fiscal fourth quarter from a profit a year ago. Dublin, Ohio-based Cardinal Health had a loss of $64 million, or 25 cents a share, for the quarter, after income of $138 million, or 50 cents a share, in the year-earlier period. The loss was mostly due to a non-cash, pre-tax goodwill impairment charge of $368 million in the Medical segment. Adjusted per-share earnings came to $1.55, ahead of the $1.49 FactSet consensus. Revenue rose 13% to $53.5 billion from $47.1 billion a year ago, also ahead of the $52.7 billion FactSet consensus. Chief Executive Jason Hollar said fiscal 2023 was an inflection point for the company, which saw growth in the pharmaceutical segment and "significant improvement" in the medical segment. The company is raising its fiscal 2024 guidance and now expects EPS to range from $6.50 to $6.75, up from prior guidance of $6.45 to $6.70. Revenue is expected to grow 10% to 12%. The stock has gained 21% in the year to date, while the S&P 500 has gained 17%.

-Ciara Linnane

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08-15-23 0710ET

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