Cardinal Health Inc - CAH STOCK NEWS

Cardinal Health (CAH) reported Q3 FY21 revenue of $39.3 billion, matching last year’s performance. However, GAAP operating earnings fell 16% to $473 million, influenced by a write-down related to the Cordis divestiture. Diluted EPS dropped to $0.40 due to a litigation tax effect. Non-GAAP operating earnings decreased 4% to $689 million, largely from COVID-19 impacts on the Pharmaceutical segment. The company narrowed its fiscal year 2021 EPS guidance to $5.90 to $6.05.

Cardinal Health (NYSE: CAH) has launched Outcomes, a digital ecosystem aimed at improving medication adherence by linking pharmacists, payers, and pharmaceutical companies. This initiative addresses the $528 billion annual cost of medication non-adherence in the U.S., which results in around 275,000 avoidable deaths each year. The Connect platform, part of Outcomes, integrates various existing Cardinal Health services and supports over 60,000 pharmacies and 23 million patients, enhancing clinical workflows and patient engagement.

On April 13, 2021, Cardinal Health (NYSE: CAH) announced it secured a $57.8 million contract with the U.S. Department of Health and Human Services for the storage and distribution of 80,000 pallets of personal protective equipment (PPE). This contract has the potential to reach $91.6 million if all options are exercised. Cardinal Health's extensive distribution network will enable rapid delivery of PPE to healthcare providers across the U.S. in response to ongoing public health emergencies, including the COVID-19 pandemic.

Cardinal Health (NYSE: CAH) has launched Cardinal Health™ Navista™ Tech Solutions (TS), designed to assist community oncologists in enhancing patient care and minimizing costs during the shift to value-based care. This suite includes integrated AI-enabled solutions such as Episode Analytics for cost tracking, CureMD Oncology Cloud for practice management, and CORE™ for population health support. By offering these tools, Cardinal Health aims to improve decision-making, automate processes, and reduce administrative burdens, ultimately driving better patient outcomes and financial performance.

Cardinal Health (NYSE: CAH) will release its financial results for Q3 fiscal year 2021 on May 6, before market opening. A webcast discussing these results will begin at 8:30 a.m. Eastern. The company specializes in distribution of pharmaceuticals and medical products, serving healthcare facilities globally, with operations in over 40 countries and approximately 48,000 employees. Interested parties can access the webcast and presentation on the Investor Relations page.

Cardinal Health (CAH) has signed an agreement to sell its Cordis business to Hellman & Friedman for approximately $1 billion. The divestiture, expected to close in the first half of fiscal year 2022, will decrease Cardinal Health's Medical segment profit by $60 million to $70 million annually. The company anticipates a pre-tax loss of up to $120 million for Q3 of fiscal year 2021 related to this transaction. Cardinal Health retains liability for certain lawsuits associated with Cordis post-sale.

On February 18, 2021, Cardinal Health announced a partnership with HIMSS Analytics as a certified organization for the Clinically Integrated Supply Outcomes Model (CISOM). This collaboration aims to enhance healthcare supply chain management and minimize medical errors. WaveMark™ Supply Management & Workflow Solutions will assist health systems in evaluating their supply chain maturity, facilitating automation, and improving patient care efficiency. Key benefits include automated tracking for recalls, cost savings insights, and comprehensive supply documentation, aiming for better patient outcomes at lower costs.

Cardinal Health reported Q2 FY21 revenue of $41.5 billion, a 5% increase year-over-year. Operating earnings rose 38% to $461 million, primarily benefiting from a prior-year charge related to surgical gown recalls. GAAP diluted EPS increased to $2.13, while non-GAAP diluted EPS rose 14% to $1.74. The Pharmaceutical segment saw a 4% revenue increase, but segment profit dropped 11% due to COVID-19 impacts. In contrast, the Medical segment's revenue grew 7%, with profits up 21%. Cardinal Health raised its FY21 EPS guidance to $5.85-$6.10.

Cardinal Health (NYSE: CAH) launched TotalVue™ Analytics, a predictive tool for healthcare supply chain leaders to identify logistics savings and benchmark performance. This tool enhances visibility into shipping trends, helping health systems reduce freight costs. With machine learning capabilities, it enables precise benchmarking by comparing similar hospital systems. Early users like Banner Health reported substantial cost savings by improving shipping management. The tool aims to provide actionable data and long-term efficiencies in logistics management.