Research Desk Line-up: McKesson Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Cardinal Health, Inc. (NYSE: CAH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CAH, following the Company's announcement of its financial results on August 02, 2017, for the fourth quarter fiscal 2017. The Company's revenue increased 5% on a y-o-y basis and came in ahead of market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Drugs Wholesale industry. Pro-TD has currently selected McKesson Corporation (NYSE: MCK) for due-diligence and potential coverage as the Company reported on July 27, 2017, its financial results for Q1 FY18. Register for a free membership today, and be among the early birds that get access to our report on McKesson when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CAH; also brushing on MCK. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=CAH
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Earnings Reviewed
For three months ended June 30, 2017, Cardinal Health's revenue increased 5% to $32.97 billion on a y-o-y basis from $31.38 billion in Q4 FY16. The revenue surpassed analysts' expectations of $32.8 billion.
For the reported quarter, Cardinal Health's gross profit decreased 3% to $1.62 billion from $1.67 billion in Q4 FY16. During Q4 FY17, the Company's gross margin decreased 39 basis points to 4.92% of revenue from 5.31% of revenue in Q4 FY16. For the reported quarter, Cardinal Health's adjusted gross profit margin decreased 22 basis points to 4.92% of revenue from 5.14% of revenue in Q4 FY16.
During Q4 FY17, the Company's effective tax rate was 25.8% compared to 41.8% in Q4 FY16. For the reported quarter, Cardinal Health's adjusted effective tax rate was 27% compared to 37.6% in Q4 FY16.
For the reported quarter, Cardinal Health's EBIT decreased 29% to $439 million from $620 million in Q4 FY16. During Q4 FY17, the Company's EBIT margin decreased 65 basis points to 1.33% of revenue from 1.98% of revenue in Q4 FY16. During Q4 FY17, the Company's adjusted EBIT decreased 47 basis points to 640 million from $643 million in Q4 FY16. During Q4 FY17, the Company's adjusted EBIT margin decreased 11 basis points to 1.94% of revenue from 2.05% of revenue in Q4 FY16.
During Q4 FY17, Cardinal Health's net income decreased 18% to $274 million on a y-o-y basis from $333 million in Q4 FY16. For the reported quarter, the Company's adjusted net income increased 12% to $416 million on a y-o-y basis from $372 million in Q4 FY16. During Q4 FY17, Cardinal Health's diluted EPS decreased 16% to $0.86 on a y-o-y basis from $1.02 in Q4 FY16. For the reported quarter, the Company's adjusted diluted EPS increased 15% to $1.31 on a y-o-y basis from $1.14 in Q4 FY16. The adjusted diluted EPS surpassed analysts' expectations of $1.24.
On August 09, 2017, the Company's Board of Directors approved dividend of $0.46 on its common stock, to be paid on October 15, 2017, for stockholders of record as of October 02, 2017.
Cardinal Health's Segment Details
Pharmaceutical - During Q4 FY17, the Pharmaceutical segment's revenue increased 5% to $29.55 million from $28.18 million in Q4 FY16. For the reported quarter, the segment's profit decreased 7% to $505 million compare to $542 million in Q4 FY16. The decrease was mainly due to generic pharmaceutical pricing and the Company's investment in the Pharmaceutical IT platform. During Q4 FY17, the segment's profit margin decreased 22 basis points to 1.71% of revenue from 1.93% of revenue in Q2 FY16.
Medical - During Q4 FY17, the Medical segment's revenue increased 6% to $3.42 billion from $3.21 million in Q4 FY16. For the reported quarter, the segment's profit increased 13% to $138 million versus $122 million in Q4 FY16. The increase was mainly due to compensation-related items and growth in distribution services. During Q4 FY17, the segment's profit margin increased 22 basis points to 4.03% of revenue from 3.81% of revenue in Q2 FY16.
Balance Sheet
During Q4 FY17, Cardinal Health's return on equity (ROE) ratio was 16.3% compared to 20% in Q4 FY16. For the reported quarter, the Company's adjusted ROE ratio was 26.3% compared to 26.4% in Q4 FY16.
In Q4 FY17, Cardinal Health's debt to total capital ratio was 60% compared to 46% in Q4 FY16.
Outlook
For FY18, Cardinal Health expects adjusted diluted EPS to be in the range of $4.85-$5.10 and capital expenditure to be in the range of $500 million-$540 million.
The Company expects adjusted effective tax rate to be in the range of 35%-37% in FY18.
Stock Performance
At the close of trading session on Friday, August 18, 2017, Cardinal Health's stock price declined 1.20% to end the day at $64.38. A total volume of 1.43 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 15.98 and have a dividend yield of 2.87%. At Friday's closing price, the stock's net capitalization stands at $20.62 billion.
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SOURCE: Pro-Trader Daily