The FINANCIAL -- Cardinal Health Inc. said its earnings rose 26% on sales growth led by its drug-distribution segment during the quarter ended in June.
The Dublin, Ohio-based company also raised the lower end of its per-share earnings outlook by a dime for its recently started fiscal year. Cardinal now expects per-share profit from continuing operations in a range of $4.85 to $5.05.
Cardinal, a drug wholesaler that also makes gloves and surgical apparel, is working to expand its portfolio of medical products as hospitals merge and consolidate. Earlier this month, Cardinal completed its roughly $1.12 billion acquisition of Harvard Drug Group, a deal that broadens its offerings of generic and over-the-counter medications, according to Nasdaq.
Cardinal also is in the process of acquiring the Cordis heart-product business of Johnson & Johnson for roughly $1.94 billion. The deal will add stents and catheters to the list of products Cardinal offers.
For the latest quarter, Cardinal reported a profit of $295 million, or 88 cents a share, up from $234 million, or 68 cents a share, a year earlier. Excluding acquisition-related costs, restructuring-related charges, a litigation recovery and other items, per-share earnings rose to $1 from 83 cents. Revenue jumped 20% to $27.5 billion.
Analysts polled by Thomson Reuters expected per-share profit of 99 cents and revenue of $26.05 billion.
Medical-segment revenue increased 2% to $2.9 billion, while the pharmaceutical segment revenue grew 23% to $24.7 billion.