Shares of Cardinal Health surged 5.41% in pre-market trading on Tuesday, driven by a fiscal 2027 profit outlook that significantly exceeded Wall Street expectations and a strong fiscal fourth-quarter earnings performance.
The company guided for full-year adjusted earnings per share of $12.40 to $12.60, representing 13% to 15% growth and handily beating the FactSet consensus estimate of $12.08. This upbeat forecast was bolstered by fiscal Q4 adjusted earnings of $2.91 per share, which topped analyst estimates of $2.42. While quarterly revenue of $63.67 billion missed the $65.03 billion consensus, the earnings strength and optimistic guidance overshadowed the top-line miss.
Additionally, the board approved a $5 billion incremental share repurchase authorization, further signaling confidence in its financial health. The company cited sustained demand for specialty drugs and biosimilars, along with growth in its pharmaceutical segment, as key drivers for the positive outlook.
Comments