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Aug. 11, 2022, 7:07 a.m. EDT

Cardinal Health shares slump premarket after profit miss, CEO change

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By Ciara Linnane

Cardinal Health Inc. shares /zigman2/quotes/206646342/composite CAH -1.81% slumped 4.5% in premarket trade Thursday, after the drug distributor missed profit estimates for the second quarte and announced a leadership change. The company posted net income of $138 million, or 50 cent a share, for the quarter, up from $116 million, or 40 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.05, below the $1.17 FactSet consensus. Revenue rose 11% to $47.103 billion from $42.586 billion a year ago, ahead of the $44.714 billion FactSet consensus. Earnings included a $303 million non-cash, pre-tax goodwill impairment charge in the medical segment. "In fiscal year 2022, Medical segment performance was significantly impacted by inflation and supply chain constraints," said Mike Kaufmann, CEO of Cardinal Health. "In addition, the Pharmaceutical segment grew 5% and we generated strong cash flow, returning $1.6 billion to our shareholders through share repurchases and dividends." The company is now expecting fiscal 2023 adjusted EPS of $5.05 to $5.40, compared with a FactSet consensus of $5.37. Separately, the company said CEO Kaufmann is leaving the company and the board and will be replaced by Jason Hollar, currently CFO. It named Patricia English, currently chief accounting officer as interim CEO. Shares have gained 22% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.72% has fallen 12%.

/zigman2/quotes/206646342/composite
US : U.S.: NYSE
$ 66.05
-1.22 -1.81%
Volume: 2.14M
Sept. 23, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
3.00%
Market Cap
$18.00 billion
Rev. per Employee
$3.90M
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/zigman2/quotes/210599714/realtime
US : S&P US
3,693.23
-64.76 -1.72%
Volume: 2.22B
Sept. 23, 2022 5:04p
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