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Cardinal Health Inc. Earnings: Margin Expands Boosted by Rising Revenue, Net Income Rises

S&P 500 component Cardinal Health Inc. reported net income above Wall Street’s expectations for the second quarter. Cardinal Health offers products and services that improve the safety and productivity of healthcare providers.

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Cardinal Health Earnings Cheat Sheet for the Second Quarter

Results: Net income for the drug wholesaler rose to $262 million (75 cents per share) vs. $215.4 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 21.6% from the year earlier quarter.

Revenue: Rose 6.8% to $27.1 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Cardinal Health Inc. reported adjusted net income of 81 cents per share. By that measure, the company beat the mean estimate of 76 cents per share. Analysts were expecting revenue of $26.89 billion.

Quoting Management: “We’re pleased at the strong results of our second quarter and the first half of our fiscal 2012″ said George Barrett, chairman and chief executive officer of Cardinal Health. “Both the Pharmaceutical and Medical segments delivered strong revenue growth in the second quarter, and key areas of strategic focus performed very well. Robust 30 percent profit growth in the Pharmaceutical segment versus the prior year more than offset the anticipated impact of residual commodity cost pressures on Medical segment profit.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 6 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.6% to $26.79 billion in the first quarter. The figure rose 9.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.1% in the third quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 19.7% while the figure dropped in the fourth quarter of the last fiscal year.

Looking Forward: The average estimate for the third quarter is steady at 95 cents a share. At $3.19 per share, the average estimate for the fiscal year has risen from $3.18 sixty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com