Cardinal Health forecasts full-year profit above estimates on specialty drug strength
Aug 11 (Reuters) - U. S. drug distributor Cardinal Health on Tuesday forecast fiscal 2027 profit well above Wall Street expectations after topping fourth-quarter profit estimates, driven by sustained demand for specialty drugs. Shares of the company w. . .
Aug 11 (Reuters) – U. S. drug distributor Cardinal Health on Tuesday forecast fiscal 2027 profit well above Wall Street expectations after topping fourth-quarter profit estimates, driven by sustained demand for specialty drugs. Shares of the company were up over 4% in premarket trading. Here are some details:• Drug distributors are capitalizing on rising demand for biosimilars and high-margin medicines treating complex conditions such as cancer, rheumatoid arthritis and autoimmune diseases. • Cardinal Health expects 2027 adjusted profit per share between $12. 40 and $12. 60. Analysts on average were expecting it to be $12. 04 per share. • The Dublin, Ohio-based company’s total fourth-quarter revenue rose 6% to $63. 67 billion, but missed analysts’ expectations of $65. 03 billion, according to data compiled by LSEG. • Cardinal Health’s adjusted quarterly profit of $2. 91 per share beat estimates of $2. 42. • The company’s largest unit by revenue, Pharmaceutical and Specialty Solutions, reported a 6% year-over-year increase in sales to $55. 4 billion during the quarter, fueled by demand for branded and specialty drugs. • Last month, Cardinal bought AdaptHealth’s diabetes health business and medical supply provider Strive Medical in separate tuck-in deals for about $360 million in total, expanding its home care business. • The AdaptHealth transaction broadened the company’s reach in diabetes care by utilizing its direct-to-consumer distribution platform for supplies including continuous glucose monitors and enhanced its position in the urology market through Strive Medical. • Cardinal also said on Tuesday it sees $1 billion in share repurchases in fiscal year 2027. (Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Maju Samuel)