Cardinal Q4 Profit Rises, Revenue Flat
Cardinal Health said on Thursday its fiscal fourth-quarter earnings rose 16.4%, driven by strong sales of generic drugs, winning new customers and increased business with existing customers.
The company issued a forecast for fiscal 2013 that was somewhat lower than analysts were expecting, partly due to the loss of a big customer.
Net profit in the quarter rose to $236 million, or 68 cents a share, from $202.7 million, or 57 cents a share, a year earlier. An accounting change during the year means the year-ago figure was restated to 58 cents a share, the company said.
Earnings from continuing operations excluding one-time items rose to $255 million, or 73 cents a share.
Analysts on average were expecting earnings on that basis of 72 cents a share, according to Thomson Reuters I/B/E/S.
Revenue was unchanged at $26.8 billion as increased sales of its medical products were offset by decreased revenue from its pharmaceuticals business.
Analysts were expecting on average revenue of $27.3 billion.
Overall profit from the pharmaceuticals business rose 15%, but revenue fell 1% because even though generic drugs generate less revenue, the profit margins are higher than for branded drugs.
During the quarter, more branded drugs were converted into generics, the company said.
In the medical segments business, which includes the sale of medical, surgical and laboratory products such as surgical gowns, vials, plastic gloves and instruments, profit rose 2% while revenue rose 5%.
The company forecast earnings for fiscal 2013, excluding one-time items, of $3.35 to $3.50 a share.
Analysts were expecting earnings of $3.54 a share, on revenue of $105.8 billion.
Rival AmerisourceBergen recently signed a three-year supply deal worth $18.5 billion with pharmacy benefit manager Express Scripts Holding, replacing Cardinal.
