Yahoo Finance What's in Store for Cardinal Health (CAH) in Q3 Earnings?
Cardinal Health, Inc. CAH is scheduled to report third-quarter fiscal 2024 results on May 2, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 16.67%. CAH’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 15.64%.
Q3 Estimates
For the fiscal third quarter, the consensus mark for earnings is pegged at $1.95 per share, indicating an improvement of 12.1% from the prior-year quarter’s reported figure. The same for revenues is pinned at $55.82 billion, implying growth of 10.6% year over year.
Factors to Note
On the second quarter’s earnings call, the management commented on an updated segment structure, beginning from the third quarter. The company will be reporting its third-quarter results under new operating segments —Pharmaceutical and speciality solutions, Global Medical Products and Distribution (GMPD) segment, nuclear at-Home and OptiFreight.
The second quarter of fiscal 2024 witnessed an uptick in revenues from the Pharmaceutical segment, which amounted to approximately $54 billion, up 12% on a year-over-year basis. The Pharmaceutical Distribution and Specialty Solutions segment saw a rise in sales of branded pharmaceuticals during the second quarter, which was reflected in the performance. The segment's profit increased 11.6% during the period. This momentum is likely to have continued in the fiscal third quarter. Moreover, the rising demand for GLP-1 medications is likely to have acted as a tailwind.
Higher contributions from brand and specialty products, as well as the effectiveness of the generics program, drove the positive outcome for the pharmaceutical segment in the last reported quarter. This trend is likely to have continued in the to-be-reported quarter as well.
In January 2024, Cardinal Health announced the acquisition of Specialty Networks, which is likely to have further boosted the company’s Speciality Solutions segment. The company provided an update on the integration process of this acquisition during the third-quarter earnings call.
Medical segment’s revenues grew 3.5% year over year in the last reported quarter, driven by growth in at-Home Solutions and GMPD. The segment’s profit was $71 million in the second quarter. The improvements in the operating performance are likely to have boosted the medical segment’s revenues in the third quarter as well.
The company announced its plans to open new distribution centers this calendar year, which is likely to aid the company’s supply chain, thus improving revenues. Cardinal Health is likely to provide an update in this regard in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Cardinal Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.98 per share) and the Zacks Consensus Estimate, is +1.11%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Cardinal Health currently carries a Zacks Rank #3
Cardinal Health, Inc. Price and EPS Surprise
Cardinal Health, Inc. price-eps-surprise | Cardinal Health, Inc. Quote
Other Stocks Worth a Look
Edwards Lifesciences EW has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have gained 12.7% year to date. EW’s earnings met estimates in the last reported quarter. Edwards Lifesciences has a four-quarter average earnings surprise of 0.80%.
SiBone SIBN has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present.
Shares of the company have lost 26.6% year to date. SIBN’s earnings beat estimates in the last reported quarter. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
NovoCure Limited NVCR has an Earnings ESP of +13.15% and a Zacks Rank of 3 at present.
The company’s shares have rallied 12.7% year to date. NVCR’s earnings beat estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 5.07%.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
NovoCure Limited (NVCR) : Free Stock Analysis Report
SiBone (SIBN) : Free Stock Analysis Report
