Shares of Cardinal Health Inc. (CAH) rallied 2.4% after the medical distributor reported better-than-expected earnings for its fiscal fourth quarter. The company had earnings of $656 million, or $2.23 a share, in the fourth quarter of 2020, up from $194 million, or 65 cents a share, in the same quarter a year ago. Adjusted earnings per share were $1.04, against a FactSet consensus of 90 cents. Cardinal said earnings for the quarter had a net negative impact of approximately $130 million as a result of people avoiding visits to the doctor and delaying elective procedures during the COVID-19 pandemic. It had also a $579 million pre-tax gain due to the sale of its stake in a company that owned NaviHealth, a post-acute care company that was sold to UnitedHealth Group's Optum in May. Cardinal reported $36.7 billion in revenue for the quarter, down 2% from $37.4 billion in the quarter a year ago. The FactSet consensus was $36.8 billion in revenue. Pharmaceutical sales were flat, at $33.2 billion, while medical segment sales fell 13% to $3.5 billion. Cardinal's stock has gained 13.9% year-to-date. The S&P 500 is up 3.0% for the year.
-Jaimy Lee; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 06, 2020 07:27 ET (11:27 GMT)
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