U.S. drug distributor Cardinal Health CAH.N 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 per cent 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 US$12.40 and US$12.60. Analysts on average were expecting it to be US$12.04 per share.
- The Dublin, Ohio-based company’s total fourth-quarter revenue rose 6 per cent to US$63.67 billion, but missed analysts’ expectations of US$65.03 billion, according to data compiled by LSEG.
- Cardinal Health’s adjusted quarterly profit of US$2.91 per share beat estimates of US$2.42.
- The company’s largest unit by revenue, Pharmaceutical and Specialty Solutions, reported a 6 per cent year-over-year increase in sales to US$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 US$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 US$1 billion in share repurchases in fiscal year 2027.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Maju Samuel)
