Cardinal Health Cuts FY22 Adj. EPS View Below Market - Update

(RTTNews) - While reporting first-quarter net loss on Thursday, despite higher revenues, Cardinal Health Inc. (CAH) lowered its fiscal 2022 adjusted earnings view below market estimates.

In pre-market activity on the NYSE, Cardinal Health shares were losing around 6.4 percent to trade at $56.65.

For the year, adjusted earnings per share is now expected to be $5.15 to $5.25, compared to previous estimate of $5.15 to $5.50.

On average, 15 analysts polled by Thomson Reuters expect earnings of $5.29 per share for the year. Analysts' estimates typically exclude special items.

The company also updated Medical segment profit outlook to a forty-five to fifty-five percent decline, from a thirty to forty-five percent decline. The revision reflects a year-over-year net incremental headwind of nearly $300 million due to inflationary and global supply chain constraint impacts.

Mike Kaufmann, chief executive officer of Cardinal Health, said, "We have updated our outlook for Medical to reflect the challenging environment, and reiterated our outlook for the Pharmaceutical segment in fiscal year 2022. Going forward, we remain confident in our ability to drive sustainable, long-term growth."