Cardinal Health stock advanced Wednesday after the multinational medical products and pharmaceuticals distributor reported better-than-expected fiscal fourth-quarter results while also hiking its fiscal 2025 profit expectations.
The Dublin, Ohio-based operation announced early Wednesday that fiscal Q4 earnings grew 19% to $1.84 per share while sales increased 12% to $59.87 billion. Prior to the report, analyst consensus had Cardinal Health Q4 EPS coming in at $1.73 on revenue totaling $58.64 billion, according to FactSet.
Cardinal Health also raised its profit guidance for fiscal 2025, expecting adjusted earnings of $7.55-$7.70 per share. The company's previous view had been around $7.50 per share.
Analysts expect fiscal 2025 EPS to remain flat with 2024, coming in at $7.53, while Cardinal Health's forecast represents a 2% increase at the top end of its guidance.
Cardinal Health stock jumped 3,5% to 106.19 during market action on Wednesday, retesting resistance at its 200-day moving average and advancing to its highest level since April. The move back above 200-day support also broke a down sloping trendline, signaling a possible early entry for aggressive investors.
CAH shares gained 1.9% to 102.58 on Tuesday. Cardinal Health is in a long consolidation, with an official buy point of 116.04, from a March 13 high, according to MarketSurge analysis.
CAH Follows McKesson
Cardinal Health is one of three players that dominate the U.S. drug distribution picture, along with McKesson and Cencora, formerly AmerisourceBergen. All three were seen as playing an aiding role in the U.S. opioid crisis, and agreed to a $19.5 billion settlement in cases related to opioid distribution in February, 2022.
Cardinal offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.
The medical and pharmaceutical distributor also has global operations, with business in more than 35 countries and more than 10,000 specialty physician offices and clinics. Cardinal Health serves in total around 27 million patients through its different business segments.
Cardinal Health stock ranks third in the Medical-Wholesale Drug/Supplies group. Industry peer McKesson recently missed sales estimates for the June fiscal first quarter while earnings topped views, with the help of stock buybacks.
Cardinal Health stock has a 78 Composite Rating out of a best-possible 99. Shares also have a 55 Relative Strength Rating and n 88 EPS Rating.
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