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Cardinal Health Reports Strong Q4 and FY 2024 Results
Dublin, Ohio, August 14, 2024 – Cardinal Health (NYSE: CAH) has announced its financial results for the fourth quarter and fiscal year 2024, showcasing significant growth in revenue, operating earnings, and profitability. The company also raised its guidance for fiscal year 2025, reflecting strong business momentum. Following this announcement, Cardinal Health's stock price rose by 6.18% in premarket trading, indicating positive market reception.
Key Financial Highlights for Q4 FY 2024
- Revenue: $59.9 billion, a 12% increase from Q4 FY 2023.
- GAAP Operating Earnings: $401 million, with diluted EPS of $0.96.
- Non-GAAP Operating Earnings: Increased 14% to $605 million.
- Non-GAAP Diluted EPS: Rose 29% to $1.84.
Fiscal Year 2024 Overview
For the full fiscal year 2024, Cardinal Health achieved:
- Revenue: $226.8 billion, an 11% increase from FY 2023.
- GAAP Operating Earnings: $1.2 billion, with diluted EPS of $3.45.
- Non-GAAP Operating Earnings: Increased 16% to $2.4 billion.
- Non-GAAP Diluted EPS: Increased 29% to $7.53.
These results were driven by continued profit growth in the Pharmaceutical and Specialty Solutions segment, as well as significant improvements in the Global Medical Products and Distribution (GMPD) segment.
Segment Performance
Pharmaceutical and Specialty Solutions
- Q4 Revenue: $55.6 billion, up 13% year-over-year.
- Q4 Segment Profit: $482 million, an 8% increase from Q4 FY 2023.
This growth was driven by increased sales in brand and specialty pharmaceuticals and positive generics program performance.
Global Medical Products and Distribution (GMPD)
- Q4 Revenue: $3.1 billion, a 2% increase from Q4 FY 2023.
- Q4 Segment Profit: $47 million, a substantial improvement compared to $7 million in Q4 FY 2023.
The GMPD segment benefited from volume growth and successful mitigation of inflationary impacts.
Other Segments
- Q4 Revenue: $1.2 billion, a 15% increase from Q4 FY 2023.
- Q4 Segment Profit: $111 million, up 11% year-over-year.
Growth in the "Other" segment was driven by strong performance in at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics.
Fiscal Year 2025 Guidance Raised
Cardinal Health has updated its fiscal year 2025 outlook, reflecting confidence in ongoing business performance:
- Non-GAAP EPS: Raised to $7.55 to $7.70, from a previous outlook of at least $7.50.
- Pharmaceutical and Specialty Solutions Segment Profit: Expected growth of 1% to 3%.
- Global Medical Products and Distribution Segment Profit: Targeted at approximately $175 million.
Additionally, the company plans to increase its share repurchase program by $250 million, bringing the total to $750 million for FY 2025.
Business and Portfolio Review
Cardinal Health remains committed to maximizing shareholder value through its GMPD Improvement Plan. The company targets $300 million in segment profit by FY 2026 and aims to generate at least $500 million in near-term value creation through further simplification actions and working capital improvements.
Recent Highlights
- Joint Venture with CVS Health: Formation of Averon, focused on increasing access to lower-cost specialty pharmaceuticals.
- New Distribution Agreements: Including a 5-year deal with Publix.
- Innovation and Expansion: Opening of the Advanced Therapy Solutions Innovation Center and new distribution centers for GMPD and at-Home Solutions.
Cardinal Health's strong Q4 and FY 2024 results, coupled with its strategic initiatives, position the company for continued growth and shareholder value creation in FY 2025 and beyond. Following the release of these results, the company's stock price surged by 6.18% in premarket trading, reflecting investor optimism.
Source: CAH
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