Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – Cardinal Health Inc (NYSE:CAH) released its 3Q14 operational results yesterday before markets opened for trading. The disappointing earnings report sent the share price of the stock reeling and resulted in a 6.32 percent sell off before markets closed for the day.
2014 Earnings Highlights
Earnings calculated under non GAAP metrics saw a three percent decrease to bottom out at $561 million and when drawn up as per GAAP metrics went up by 7 percent to $508 million. Similarly Non-GAAP earnings per share came in at $1.01 which translates to a 16 percent dip in comparison to 3Q13, and came in at 91 cent when calculated on a GAAP basis. Earnings came in at $1.7 billion for the quarter. In spite of the slow start to the second half of 2014 operations, the company went on to reaffirm its forecast for the full year 2014 operations. It expects EPS to come in between $3.75-$3.85 for the full year. Revenue for the reporting quarter came in at $21.4 billion which represents a 13 percent increase over its 3Q13 revenue.
CEO Speak
Cardinal Health Inc (NYSE:CAH) Chairman, Chief Executive Officer and Chairman of Executive Committee George S. Barrett in his comments post the earnings call explained to the analysts the circumstances surrounding the disappointing operational results for the 3Q.
He has been quoted to have said that, “When we initially provided guidance last August, we anticipated an unusual year given the expiration of the Walgreens contract. Now after completing 3 quarters, I want to acknowledge our entire team for executing against our strategic goals and for the 6% non-GAAP operating earnings growth that they’ve delivered year-to-date. Our businesses are competing well, and the moves we’re making continue to position Cardinal Health on the right side of health care trends”.