- Cardinal Health maintains its fiscal year (FY) adjusted Earnings Per Share (EPS) forecast, still projecting an EPS between $7.20 and $7.35. The estimated EPS is $7.27.
- The company reaffirms its non-GAAP EPS guidance for fiscal 2024.
- Cardinal Health foresees an adjusted free cash flow (Adj Fcf) of approximately $2 billion from 2024 to 2026.
- The company has decided not to renew its pharmaceutical distribution contracts with Optumrx.
- It anticipates a lower-than-average adjusted free cash flow in fiscal 2025.
- For fiscal years 2024 to 2026, the company is targeting a Compound Annual Growth Rate (CAGR) of 12% to 14% for their adjusted EPS.
- Although the company has not yet provided financial guidance for fiscal 2025, it expects growth in both the Pharmaceutical and Specialty Solutions segment profit and non-GAAP diluted EPS.
- Cardinal Health intends to continue delivering profitable growth in fiscal 2025, and is confident in reaffirming its long-term targets for the Pharmaceutical and Specialty Solutions segments, even without the renewal of certain contracts.
- According to analysts, there are 7 buy ratings, 9 hold ratings, and 2 sell ratings for Cardinal Health.
Cardinal Health on Smartkarma
Analyst coverage on Cardinal Health by Baptista Research on Smartkarma shows a positive outlook on the company’s recent performance and strategic moves. In the report titled “Cardinal Health: Expanding Acquisitions Portfolio With Specialty Networks & Other Major Drivers,” CEO Jason Hollar and CFO Aaron Alt expressed satisfaction with the strong profit growth in both segments. Cardinal Health‘s acquisition of Specialty Networks is highlighted as a crucial step in enhancing the company’s specialty growth strategy, with an expected 7% to 9% segment profit growth for fiscal 2024.
Another report by Baptista Research, titled “Cardinal Health: The Powerhouse Behind Today’s Medical and Pharmaceutical Breakthroughs! – Major Drivers,” commends the company for exceeding expectations and achieving significant milestones. The consolidated enterprise results revealed a 10% increase in total revenue, primarily driven by the Pharma segment. Despite flat revenue in the Medical segment, Cardinal Health managed to surpass expectations, reflecting a positive momentum in the company’s overall performance.
A look at Cardinal Health Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 0 | |
Dividend | 3 | |
Growth | 3 | |
Resilience | 4 | |
Momentum | 4 | |
OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Cardinal Health, Inc. is well-positioned for long-term success, according to Smartkarma Smart Scores. With a solid rating in resilience and momentum, the company shows promise in weathering challenges and maintaining positive growth. Its services in healthcare product distribution and consulting, pharmaceutical packaging, and drug delivery systems development contribute to its overall strength in the market.
Although Cardinal Health may not score as high in value, its dividend and growth ratings suggest stability and potential for expansion. As a provider of essential products and services to healthcare providers and manufacturers, the company’s strategic positioning in the industry could lead to sustainable performance over time. Investors may find Cardinal Health an attractive investment option based on these favorable Smart Scores indicators.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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