The following is a summary of the Cardinal Health, Inc. (CAH) Q3 2024 Earnings Call Transcript:
Financial Performance:
Cardinal Health reported Q3 revenue of $55 billion, a 9% increase, driven by revenue growth in all segments.
Gross margin increased 9% to $1.9 billion.
Operating earnings were 10% higher than last year at $666 million.
For Q3, the company reported EPS growth of 20% to $2.08.
GMPD segment delivered a segment profit of $20 million, a $66 million year-over-year increase.
Adjusted free cash flow year-to-date was $2.1 billion.
For fiscal year 2024, the company expects an EPS of around $7.30 to $7.40.
For fiscal year 2025, approximated non-GAAP EPS is about $7.50.
Business Progress:
Cardinal Health confirmed a positive $65 million, half-way to their fiscal '26 target of $300 million, primarily through mitigation of inflation which has reached 90% by the end of Q3.
The company has instigated a re-segmentation of the operation for better focus and accountability, with a new reporting structure implemented at the start of Q3.
They recently completed the acquisition of Specialty Networks and are expecting long-term potential.
A new distribution center is scheduled to open by next fiscal year.
Cardinal Health is proactive in simplifying their processes, taking steps like reducing corporate real estate and reorganizing teams to enhance business growth.
The company reports anticipation of a growth acceleration in home healthcare due to network expansion and improvements in automation technology.
Progress in improving Cardinal health brand volume and ongoing cost reductions are identified as the main aspect of long-term business prospects.
More details: Cardinal Health IR
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