Healthcare distributor and services company Cardinal Health (NYSE: CAH) will be announcing earnings results this Thursday before the bell. Here’s what you need to know.
Cardinal Health missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $60.16 billion, flat year on year. It was a mixed quarter for the company, with a decent beat of analysts’ full-year EPS guidance estimates but a slight miss of analysts’ revenue estimates.
Is Cardinal Health a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Cardinal Health’s revenue to grow 13.6% year on year to $59.36 billion, a reversal from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cardinal Health has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Cardinal Health’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. BrightSpring Health Services delivered year-on-year revenue growth of 14.7%, beating analysts’ expectations by 5.3%, and HCA Healthcare reported revenues up 9.6%, topping estimates by 3.3%. HCA Healthcare traded up 6.4% following the results.
Read our full analysis of BrightSpring Health Services’s results here and HCA Healthcare’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 6.1% on average over the last month. Cardinal Health is up 7.4% during the same time and is heading into earnings with an average analyst price target of $181.21 (compared to the current share price of $166).
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