Cardinal Health Q3 2023 Earnings Report
Key Takeaways
Cardinal Health reported a 13% increase in revenue to $50.5 billion for Q3 2023, driven by growth in the Pharmaceutical segment. GAAP operating earnings were $572 million, and GAAP diluted EPS was $1.34. Non-GAAP operating earnings increased by 11% to $606 million, and non-GAAP diluted EPS rose by 20% to $1.74. The company raised its full-year non-GAAP EPS and adjusted free cash flow guidance.
Revenue increased by 13% to $50.5 billion, driven by growth in the Pharmaceutical segment.
GAAP operating earnings were $572 million, with a GAAP diluted EPS of $1.34.
Non-GAAP operating earnings increased by 11% to $606 million, and non-GAAP diluted EPS increased by 20% to $1.74.
Fiscal year 2023 non-GAAP EPS guidance was raised and narrowed to $5.60 to $5.80, with adjusted free cash flow guidance also raised and narrowed to $2.0 to $2.3 billion.
Cardinal Health
Cardinal Health
Forward Guidance
The company raised and narrowed its fiscal year 2023 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $5.60 to $5.80, from $5.20 to $5.50.
Positive Outlook
- Fiscal year 2023 non-GAAP EPS guidance raised and narrowed to $5.60 to $5.80, from $5.20 to $5.50.
- Fiscal year 2023 adjusted free cash flow guidance raised and narrowed to $2.0 to $2.3 billion, from $1.5 to $2.0 billion
- Fiscal year 2023 Pharmaceutical segment profit outlook updated to 10.5% to 12% growth, from 4% to 6.5% growth.
- Interest and other in the range of $95 to $105 million.
- Adjusted free cash flow of $2.0 to $2.3 billion.
Challenges Ahead
- Medical segment profit outlook to a decline of approximately 50%, from flat to a decline of 20%.
- Non-GAAP effective tax rate of 22% to 23%.
- Diluted weighted average shares outstanding of 262 to 263 million.
- Capital expenditures of ~$450 million.
- Company does not provide forward-looking guidance on a GAAP basis as certain financial information is not available and cannot be reasonably estimated.