Cardinal Health Inc. Earnings: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Cardinal Health Inc. (NYSE:CAH) reported net income above Wall Street’s expectations for the third quarter. Cardinal Health offers products and services that improve the safety and productivity of healthcare providers.

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Cardinal Health Earnings Cheat Sheet for the Third Quarter

Results: Net income for Cardinal Health Inc. rose to $333.4 million (95 cents per share) vs. $246 million (70 cents per share) in the same quarter a year earlier. This marks a rise of 35.5% from the year-earlier quarter.

Revenue: Rose 3.2% to $26.92 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cardinal Health Inc. reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 88 cents per share. Analysts were expecting revenue of $26.71 billion.

Quoting Management: “We are pleased to report another solid quarter of revenue growth for both of our business segments, as well as continued strong growth in earnings per share,” said George Barrett, chairman and chief executive officer of Cardinal Health. “Our Pharmaceutical segment continued its robust profit performance. Our Medical segment fundamentals showed continued momentum, but as anticipated, profit was negatively impacted by the cost of commodity inputs. However, we see the year-over-year impact of this dynamic subsiding in the fourth quarter of fiscal 2012 and into fiscal 2013.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the second quarter, by one cent in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.7% to $27.08 billion in the second quarter. The figure rose 9.6% in the first quarter from the year earlier and climbed 9.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income rise for two consecutive quarters. In the second quarter, net income rose 21.6% from the year earlier.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 76 cents per share, up from 74 cents ninety days ago. The average estimate for the fiscal year is $3.17 per share, down from $3.19 ninety days ago.

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

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