Cardinal Health Beats Q4 Estimates, but Sales Decline

Summary:

Cardinal Health (NYSE: CAH) surpassed Wall Street's revenue forecasts in Q4 CY2024 but experienced a 3.8% year-over-year sales decline to $55.26 billion. Despite this, its non-GAAP profit of $1.93 per share exceeded analysts' projections by 9.4%.

Q4 CY2024 Highlights:

* Revenue: $55.26 billion (3.8% YoY decline, 0.9% beat)
* Adjusted EPS: $1.93 (9.4% beat)
* Adjusted EBITDA: $722 million (in line)
* Operating Margin: 1% (in line with Q4 2023)
* Free Cash Flow: -$499 million (down from $1.08 billion)

Company Overview:

Founded in 1971, Cardinal Health is a distributor and services provider of pharmaceuticals and medical supplies to healthcare facilities.

Sales Growth:

* 8.2% annualized revenue growth over the past five years
* 7.3% annualized revenue growth over the past two years
* Pharmaceutical revenue contributed 91% to revenues (8% YoY growth)
* Medical revenue contributed 7.4% to revenues (1.7% YoY growth)

Profitability:

* Average adjusted operating margin of 1.2% over the past five years
* Adjusted operating margin of 1.1% in Q4 CY2024 (in line with Q4 2023)
* EPS grew at a 7.1% compounded annual growth rate over the past five years
* Q4 EPS of $1.93, up 9.4% from the same quarter last year

Key Takeaways:

* Cardinal Health slightly beat revenue expectations but experienced a sales decline.
* EPS outperformed analysts' estimates.
* Despite challenges, the company remains positioned for future growth.

Investment Recommendation:

The article does not provide an investment recommendation. Refer to the full research report for actionable insights on Cardinal Health's stock.