Cardinal Health Inc. (NYSE: CAH) saw a 1% drop in its stock price during premarket trade on Tuesday, following the release of its fiscal fourth-quarter earnings report. The Dublin, Ohio-based health services company reported a loss of $64 million, or 25 cents per share, for the quarter, compared to a profit of $138 million, or 50 cents per share, during the same period last year.
The loss can be attributed mainly to a non-cash, pre-tax goodwill impairment charge of $368 million in the Medical segment. However, despite the loss, Cardinal Health’s adjusted earnings per share came in at $1.55, surpassing the FactSet consensus of $1.49. The company also reported a revenue increase of 13%, reaching $53.5 billion compared to $47.1 billion in the previous year, exceeding the FactSet consensus of $52.7 billion.
CEO Jason Hollar stated that fiscal year 2023 marked an inflection point for the company, with notable growth in the pharmaceutical segment and significant improvement in the medical segment. As a result, Cardinal Health has raised its fiscal year 2024 guidance and now anticipates earnings per share ranging from $6.50 to $6.75, up from the previous guidance of $6.45 to $6.70. Additionally, the company projects revenue growth of 10% to 12%.
Despite the quarterly loss, the stock of Cardinal Health has shown resilience, gaining 21% year-to-date while the S&P 500 has increased by 17%.
