Cardinal Health results beat analyst estimates

Cardinal Health announced fiscal second quarter 2018 earnings before the market opened on Thursday that exceeded analysts’ expectations.

The Dublin-based company, which deals in drug distribution and medical products, is Ohio’s largest company by revenue.

For the quarter ended Dec. 31, Cardinal recorded earnings of $1.05 billion, or $3.33 per share, on revenue of $35.19 billion.

The results reflect a 6 percent increase in revenue and a 226 percent increase in earnings year over year, as the company recognized a $736 million, or $2.83 per share, benefit attributable to “transitional tax benefits” as a result of U.S. tax reform.

Without considering one-time items, including a 20-cent-per share benefit from tax reform, earnings per share were $1.31. That beat Wall Street consensus expectations by 16 cents per share.

“Overall, we are very pleased with the quarter,” said Mike Kaufmann, CEO of Cardinal, in a statement.

Kaufmann, who took over the title from former CEO George Barrett in January, noted better-than-expected results from Cardinal’s drug distribution business, which has been challenged by generic pricing pressure and the loss of a major mail-order customer, Prime Therapeutics, last year.

Cardinal raised its earnings outlook for its full 2018 fiscal year to $5.25 to $5.50 per share, up from the previous $4.85 to $5.10. That reflects an expected 40 cents per share benefit from federal tax changes.