Cardinal Health (CAH) Issues FY19 Earnings Guidance

Cardinal Health (NYSE:CAH) issued an update on its FY19 earnings guidance on Thursday morning. The company provided EPS guidance of $4.90-5.15 for the period, compared to the Thomson Reuters consensus EPS estimate of $5.00. Cardinal Health also updated its FY 2019 guidance to $4.90-5.15 EPS.

Shares of CAH traded down $1.52 during trading hours on Friday, hitting $54.61. 147,620 shares of the company were exchanged, compared to its average volume of 3,880,410. The firm has a market cap of $15.75 billion, a P/E ratio of 10.90, a price-to-earnings-growth ratio of 1.66 and a beta of 0.94. Cardinal Health has a fifty-two week low of $48.14 and a fifty-two week high of $75.75. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.53 and a current ratio of 1.07.

Cardinal Health (NYSE:CAH) last released its earnings results on Thursday, November 8th. The company reported $1.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.21. The company had revenue of $35.21 billion for the quarter, compared to analyst estimates of $33.66 billion. Cardinal Health had a return on equity of 22.59% and a net margin of 0.19%. Cardinal Health’s quarterly revenue was up 7.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.09 EPS. On average, research analysts predict that Cardinal Health will post 5.02 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 15th. Investors of record on Wednesday, January 2nd will be paid a $0.4763 dividend. This represents a $1.91 annualized dividend and a yield of 3.49%. Cardinal Health’s dividend payout ratio (DPR) is presently 38.20%.

Cardinal Health announced that its board has authorized a stock repurchase plan on Thursday, November 8th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 6.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

Several analysts recently weighed in on the company. Robert W. Baird reduced their price objective on Cardinal Health from $51.00 to $50.00 and set a neutral rating on the stock in a research note on Tuesday, August 7th. Argus reduced their price objective on Cardinal Health from $85.00 to $75.00 and set a buy rating on the stock in a research note on Monday, July 16th. Royal Bank of Canada set a $60.00 price objective on Cardinal Health and gave the company a hold rating in a research note on Friday, September 21st. Mizuho reaffirmed a hold rating and issued a $53.00 price objective on shares of Cardinal Health in a research note on Sunday, August 12th. Finally, Zacks Investment Research lowered Cardinal Health from a hold rating to a sell rating in a research note on Tuesday, October 9th. Four equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the company. The stock has an average rating of Hold and an average price target of $61.08.

In other Cardinal Health news, CEO Jon L. Giacomin sold 2,890 shares of the stock in a transaction dated Monday, August 20th. The stock was sold at an average price of $51.95, for a total value of $150,135.50. Following the completion of the transaction, the chief executive officer now directly owns 72,652 shares in the company, valued at $3,774,271.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 1.10% of the stock is currently owned by company insiders.

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Cardinal Health Company Profile

Cardinal Health, Inc operates as an integrated healthcare services and products company in the United States and internationally. It provides medical products and pharmaceuticals, and solutions that enhance supply chain efficiency for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices.

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Earnings History and Estimates for Cardinal Health (NYSE:CAH)

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