Cardinal Health, a leading player in the drug distribution sector, has raised its financial outlook for the full year, reflecting impressive results from its latest fiscal fourth quarter that surpassed market expectations. The company anticipates adjusted earnings per share (EPS) for fiscal 2025 to fall within the range of $7.55 to $7.70, a notable increase from the previous estimate of at least $7.50.
According to consensus estimates on Capital IQ, normalized EPS is expected to reach $7.58. In a remarkable performance for fiscal 2024, Cardinal Health's adjusted EPS rose by 29%, achieving a remarkable $7.53 per share. 'Fiscal 2024 marked a year of strong operational execution and record financial results, delivered in tandem with key strategic progress in the portfolio,' stated Chief Executive Officer Jason Hollar in a recent announcement.
He further emphasized that the company enters the new fiscal year with considerable momentum and assurance, which is clearly reflected in the revised guidance for fiscal year 2025. Despite these optimistic forecasts, Cardinal Health's revenue in its pharmaceutical and specialty solutions segment is expected to decline by 4% to 6% in the ongoing fiscal year.
However, the profit from this segment has been revised upwards, now estimated to grow between 1% to 3%, compared to the prior guidance which anticipated at least 1% growth. On a positive note, global medical products and distribution sales are projected to increase by 3% to 5%, indicating robustness in that area. For the quarter ending in June, Cardinal Health experienced a significant rise in adjusted EPS, soaring to $1.84, an increase from $1.43 reported in the previous year’s quarter.
This EPS figure surpassed analysts' expectations, which were pegged at $1.73. Revenue for the quarter also saw a promising advance, climbing 12% to reach $59.87 billion, surpassing the analysts' estimate of $58.63 billion. Following the announcement of these results, the stock increased by 6.5% in premarket trading. In the pharmaceutical and specialty solutions division, revenue surged by 13% to $55.61 billion, propelled by growth in brand and specialty pharmaceutical sales from existing clients.
At the same time, segment profit reported an 8% increase, largely driven by the successful generics program launched by Cardinal Health. Furthermore, revenue derived from global medical products and distribution experienced a modest uptick of 2%, bringing in $3.11 billion, aided by an increase in volume.
Cardinal Health's other revenue sources also showed a promising trend, increasing by 15% to hit $1.17 billion, driven by advancements in at-home solutions, nuclear and precision health initiatives, and the firm’s OptiFreight Logistics service. Market analysts continue to closely monitor Cardinal Health's trajectory as it embarks on fiscal 2025 with a robust strategy underpinned by solid financial growth and operational excellence..