Cardinal Health First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cardinal Health (NYSE:CAH) will unveil its latest earnings on Tuesday, October 30, 2012. Cardinal Health offers products and services that improve the safety and productivity of healthcare providers.

Cardinal Health Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 79 cents per share, a rise of 8.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 85 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 79 cents during the last month. For the year, analysts are projecting profit of $3.44 per share, a rise of 7.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 73 cents per share against a mean estimate of profit of 72 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 16.8% to $236.8 million (68 cents a share) from $202.7 million (57 cents a share) the year earlier, exceeding analyst expectations. Revenue remained stable at $26.76 billion.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price fell $2.41 (-5.6%), from $43.09 to $40.68. The stock price saw one of its best stretches over the last year between September 19, 2012 and September 27, 2012, when shares rose for seven straight days, increasing 3.5% (+$1.35) over that span. It saw one of its worst periods between November 11, 2011 and November 22, 2011 when shares fell for eight straight days, dropping 9.8% (-$4.38) over that span.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 21.6% in the second quarter of the last fiscal year and 35.5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.6% in the first quarter of the last fiscal year, 6.7% in the second quarter of the last fiscal year and 3.2% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.6% in revenue from the year-earlier quarter to $26.35 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.24 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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