Healthcare distributor and services company Cardinal Health (NYSE:CAH) will be reporting earnings tomorrow before market open. Here’s what you need to know.
Cardinal Health beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $55.26 billion, down 3.8% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Cardinal Health a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cardinal Health’s revenue to grow 1.1% year on year to $55.46 billion, slowing from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cardinal Health has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Cardinal Health’s peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Option Care Health delivered year-on-year revenue growth of 16.3%, beating analysts’ expectations by 6.1%, and Centene reported revenues up 15.4%, topping estimates by 8.3%. Centene traded down 3.3% following the results.
Read our full analysis of Option Care Health’s results here and Centene’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the healthcare providers & services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Cardinal Health is up 2% during the same time and is heading into earnings with an average analyst price target of $143.74 (compared to the current share price of $139.84).
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