Cardinal Health Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cardinal Health, Inc. (NYSE:CAH) will unveil its latest earnings on Thursday, May 3, 2012. Cardinal Health offers products and services that improve the safety and productivity of healthcare providers.

Cardinal Health, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 88 cents per share, a rise of 17.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 95 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 88 cents during the last month. Analysts are projecting profit to rise by 18.7% compared to last year’s $3.17.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at net income of 81 cents a share versus the estimate of profit of 76 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $26.71 billion in revenue this quarter, a rise of 2.5% from the year-ago quarter. Analysts are forecasting total revenue of $107.74 billion for the year, a rise of 5% from last year’s revenue of $102.64 billion.

Analyst Ratings: Analysts are bullish on this stock, with 11 analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

A Look Back: In the second quarter, profit rose 21.6% to $262 million (75 cents a share) from $215.4 million (61 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.7% to $27.08 billion from $25.37 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.1% in the third quarter of the last fiscal year, 9.4% in the fourth quarter of the last fiscal year and 9.6% in the first quarter before increasing again in the second quarter.

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose in the second quarter.

Stock Price Performance: Between March 1, 2012 and April 27, 2012, the stock price had risen 93 cents (2.2%), from $41.38 to $42.31. The stock price saw one of its best stretches over the last year between June 27, 2011 and July 7, 2011, when shares rose for eight straight days, increasing 7.1% (+$3.06) 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 9.7% (-$4.33) over that span.

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

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