Cardinal Health stock moves higher following Q1 beat and raise

DUBLIN, Ohio - Cardinal Health (NYSE: NYSE:CAH ) reported better-than-expected first quarter results and raised its full-year earnings guidance, sending shares up 1.36% in premarket trading Friday.

The healthcare services company posted adjusted earnings per share of $1.88 for the fiscal first quarter, surpassing analyst estimates of $1.62. Revenue came in at $52.3 billion, above the consensus forecast of $50.9 billion.

Cardinal Health now projects full-year 2025 adjusted earnings per share of $7.75 to $7.90, up from its previous outlook of $7.55 to $7.70 and ahead of Wall Street's $7.63 estimate.

"We began fiscal 2025 by delivering strong operational and financial performance, led by the Pharmaceutical and Specialty Solutions segment," said CEO Jason Hollar. "The strength and resiliency of our largest and most significant business continues to shine, giving us confidence to raise our fiscal 2025 enterprise guidance only a quarter into the year."

The company updated its Pharmaceutical and Specialty Solutions segment profit growth outlook to 4-6%, up from 1-3% previously. However, it lowered its Global Medical Products and Distribution segment profit forecast to $140-$175 million from about $175 million, citing higher health and welfare costs.

Cardinal Health also raised its adjusted free cash flow expectations to $1.0-$1.5 billion, up from approximately $1.0 billion.

First quarter revenue decreased 4% YoY to $52.3 billion, but increased 15% excluding the impact of a previously announced large customer contract expiration. Non-GAAP operating earnings rose 12% to $625 million, driven by significant growth in the Pharmaceutical and Specialty Solutions segment.

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Source: Investing.com