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Cardinal Health's stock surges after profit and revenue beats, raised outlook

Tomi Kilgore

Shares of Cardinal Health Inc. surged 2.6% in premarket trade Thursday, after the healthcare services and products company reported fiscal third-quarter earnings and revenue that rose above expectations and raised its full-year profit guidance. Net earnings for the quarter to March 31 rose to $296 million, or 99 cents a share, from $255 million, or 81 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS was $1.59, above the FactSet consensus of $1.43. Revenue rose 5% to $35.23 billion, above the FactSet consensus of $35.07 billion. Pharmaceutical revenue grew 6% to $31.4 billion, above the FactSet consensus of $31.1 billion, while medical revenue fell 1% to $3.9 billion to match expectations. For fiscal 2019, the company raised its adjusted EPS guidance range to $5.02 to $5.17 from $4.97 to $5.17; the FactSet consensus was $5.08. The stock has rallied 11.5% year to date, while the SPDR Health Care Select Sector ETF has edged up 3.0% and the S&P 500 has advanced 14.9%.