Cardinal Health shares rise 4% after profit beats forecast
Healthcare distributor posts earnings above expectations, lifting shares despite broader sector volatility.
Cardinal Health Inc. shares rose 4% in early trading on Wednesday after the company reported quarterly profit that exceeded market forecasts.
The Dublin, Ohio-based healthcare services provider posted adjusted earnings per share of $2.15, topping the $2.05 average estimate from analysts surveyed by Refinitiv. Revenue totaled $52.3 billion, slightly below the $52.5 billion consensus but within the company’s guidance range.
Cardinal Health attributed the earnings beat to stronger-than-expected performance in its medical products and pharmaceutical distribution segments. The company also reaffirmed its full-year outlook, citing stable demand in its core healthcare markets.
Shares of Cardinal Health had declined 2% over the past month amid broader sector concerns, including supply chain pressures and regulatory scrutiny. The gain on Wednesday reflected investor relief following the earnings release, though the stock remains down 8% year-to-date.
Analysts at Jefferies maintained a hold rating on the stock, citing valuation concerns despite the positive earnings surprise. The firm set a price target of $85, below the current trading level of around $90.
Cardinal Health, a Fortune 500 company, distributes pharmaceuticals, medical and surgical products, and laboratory supplies to hospitals, pharmacies, and other healthcare providers globally.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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