San Antonio Standard

Cardinal Health issued the following announcement on May 12.

Cardinal Health (NYSE: CAH) today reported financial results for the third quarter of fiscal 2020 ended March 31, 2020.Third quarter revenue was $39.2 billion, an increase of 11% from the third quarter of last year.

Third quarter GAAP operating earnings increased 30% to $562 million. Non-GAAP operating earnings increased 8% to $719 million. GAAP diluted earnings per share (EPS) increased 20% to $1.19, while non-GAAP diluted EPS increased 2% to $1.62.

"I want to express my gratitude to our employees and our partners across the healthcare industry for their incredible efforts to help us perform our critical role in the supply chain during this unprecedented time," said Mike Kaufmann, CEO of Cardinal Health. "We remain committed to delivering products and solutions to front-line health care providers so they can safely serve and treat patients around the world. As we look toward and beyond the fourth quarter, we will continue to take strategic actions to fulfill this mission."

Q3 FY20 summary

	Q3 FY20	Q3 FY19	Y/Y
Revenue	$39.2 billion	$35.2 billion	11%
Operating earnings	$562 million	$432 million	30%
Non-GAAP operating earnings	$719 million	$667 million	8%
Net earnings attributable to Cardinal Health, Inc.	$350 million	$296 million	18%
Non-GAAP net earnings attributable to Cardinal Health, Inc.	$474 million	$475 million	0%
Diluted EPS attributable to Cardinal Health, Inc.	$1.19	$0.99	20%
Non-GAAP diluted EPS attributable to Cardinal Health, Inc.	$1.62	$1.59	2%

During the third quarters of fiscal 2020 and 2019, GAAP effective tax rates were 26.8% and 20.0%, respectively. Non-GAAP effective tax rates were 25.7% and 21.6%, respectively.

Segment results

Pharmaceutical segment

	Q3 FY20	Q3 FY19	Y/Y
Revenue	$35.1 billion	$31.4 billion	12%
Segment profit	$534 million	$536 million	0%

Third quarter revenue for the Pharmaceutical segment increased 12 percent to $35.1 billion, due to sales growth from Pharmaceutical Distribution customers and, to a lesser extent, Specialty Solutions customers. This growth included an acceleration in overall pharmaceutical sales in March, which the company believes was due to the COVID-19 pandemic.

Pharmaceutical segment profit was flat at $534 million in the third quarter. This reflects strong performance in the company's generics program and the adverse impact of Pharmaceutical Distribution customer contract renewals.

Medical segment

	Q3 FY20	Q3 FY19	Y/Y
Revenue	$4.1 billion	$3.9 billion	5%
Segment profit	$178 million	$155 million	15%

Third quarter revenue for the Medical segment increased 5 percent to $4.1 billion, due to growth in products and distribution and Cardinal Health at Home.

Medical segment profit increased 15 percent to $178 million in the third quarter due to an increase in products and distribution, including benefits from global manufacturing and cost savings initiatives.

Fiscal year 2020 outlook

While both segments experienced a modest net positive impact in the third quarter from increased volume related to the COVID-19 pandemic, the company expects a significant net negative impact to fourth quarter financial results in both segments. This is driven most meaningfully by a decrease in volume related to the cancellation or deferral of elective medical procedures.

The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.

The company reaffirms its fiscal year 2020 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. of $5.20 to $5.40.

Recent highlights

• Jason Hollar joined the company on April 27 and will become Chief Financial Officer on May 26. Jason previously served as CFO of Tenneco Inc. and Sears Holdings Corporation.
• Cardinal Health board of directors approved a quarterly dividend of $0.4859 per share. The dividend will be payable on July 15, 2020 to shareholders of record at the close of business on July 1, 2020.
• The company was recognized as a "2020 NAFE Top Companies for Executive Women" by the National Association for Female Executives for the ninth consecutive year.

Webcast

Cardinal Health will host a webcast today at 8:30 a.m. Eastern to discuss third quarter results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required. 

Presentation slides and a webcast replay will be available until May 10, 2021.

Original source can be found here.