Cardinal Health Reports First Quarter Fiscal 2023 Results – QNT Press Release

  • Revenue increased 13% to $49.6 billion
  • GAAP1 operating earnings were $137 million, GAAP diluted EPS were $0.40
  • Non-GAAP operating earnings decreased 20% to $423 million due to a decline in Medical segment profit, partially offset by an increase in Pharmaceutical segment profit; non-GAAP diluted EPS decreased 7% to $1.20
  • Company reaffirmed fiscal year 2023 non-GAAP EPS guidance

DUBLIN, Ohio, Nov. 4, 2022 /PRNewswire/ — Cardinal Health (NYSE:CAH) today reported first quarter fiscal year 2023 revenues of $49.6 billion, an increase of 13% from the first quarter of last year. First quarter GAAP operating earnings were $137 million, including a non-cash, pre-tax goodwill impairment charge of $154 million in the Medical segment. GAAP diluted earnings per share (EPS) were $0.40. Non-GAAP operating earnings decreased 20% to $423 million in the quarter due to a decline in Medical segment profit, primarily resulting from net inflationary impacts, partially offset by an increase in Pharmaceutical segment profit. Non-GAAP diluted earnings per share decreased 7% to $1.20, reflecting the change in non-GAAP operating earnings, partially offset by lower interest expense and a lower non-GAAP effective tax rate and share count.

"Our performance in the first quarter demonstrated stable fundamentals in the Pharmaceutical segment and tangible progress in the Medical segment," said Jason Hollar, CEO of Cardinal Health. "We are reaffirming our full year non-GAAP EPS guidance as we remain  focused on our Medical Improvement Plan initiatives and building upon the growth of our Pharmaceutical business. Across the company, we are operating with urgency to drive our businesses forward and remain committed to creating shareholder value."

Q1 FY23 summary

Q1 FY23

Q1 FY22



$49.6 billion

$44.0 billion

13 %

Operating earnings

$137 million

$415 million

(67) %

Non-GAAP operating earnings

$423 million

$527 million

(20) %

Net earnings attributable to Cardinal Health, Inc.

$110 million

$271 million

(59) %

Non-GAAP net earnings attributable to Cardinal Health, Inc.

$328 million

$372 million

(12) %

Effective Tax Rate2

(0.7 %)

26.3 %

Non-GAAP Effective Tax Rate

16.9 %

24.2 %

Diluted EPS attributable to Cardinal Health, Inc.



(57) %

Non-GAAP diluted EPS attributable to Cardinal Health, Inc.



(7) %

Segment results
Pharmaceutical segment

Q1 FY23

Q1 FY22



$45.8 billion

$39.8 billion

15 %

Segment profit

$431 million

$406 million

6 %

First-quarter revenue for the Pharmaceutical segment increased 15% to $45.8 billion, driven by branded pharmaceutical sales growth from existing and net new Pharmaceutical Distribution and Specialty customers.

Pharmaceutical segment profit increased 6% to $431 million in the first quarter, driven by generics program performance and a higher contribution from brand and specialty products, partially offset by inflationary supply chain costs.

Medical segment

Q1 FY23

Q1 FY22



$3.8 billion

$4.1 billion

(9) %

Segment profit

$(8) million

$123 million


First-quarter revenue for the Medical segment decreased 9% to $3.8 billion, driven by lower Products and Distribution sales, primarily due to PPE pricing and volumes. To a lesser extent, this also reflects the divestiture of the Cordis business, which was mostly offset by sales growth in at-Home Solutions.

Medical segment loss of $8 million in the first quarter was primarily due to net inflationary impacts in Products and Distribution and a lower contribution from PPE. The first quarter loss reflects $20 million in total inventory charges related to the previously-announced simplification actions, including the sale of certain disposable gloves primarily utilized in non-healthcare industries.

Fiscal year 2023 outlook1
The company reaffirmed its fiscal year 2023 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. of $5.05 to $5.40.

This guidance includes an update to Medical segment profit outlook to flat to 20% decline, from 10% growth to 10% decline, which reflects the impact of the previously announced simplification actions. Additionally, the company updated expectations for its fiscal 2023 interest and other to $140 million to $160 million, from $140 million to $170 million; its non-GAAP effective tax rate to 23% to 24%, from 23% to 25%; and its diluted weighted average shares outstanding to 262 million to 264 million, from 262 million to 266 million.

The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.

Recent highlights

  • Cardinal Health announced initiatives aimed at positioning the company for long-term success, building on Cardinal Health's previously announced growth plans. These initiatives have benefited from input received from Elliott Investment Management L.P and include (1) the appointment of four new independent directors to the Board of Directors ("Board"); (2) the formation of the Business Review Committee of the Board, to support a comprehensive review of the company's strategy, portfolio, capital-allocation framework and operations with the goal of maximizing Cardinal Health's potential for the benefit of all stakeholders; and (3) the company's plan to hold an Investor Day in the first half of calendar 2023 to share the conclusions of the Business Review Committee's review and to provide additional guidance.
  • Cardinal Health announced Debbie Weitzman became CEO of the company's Pharmaceutical Segment on September 19, 2022, after serving in her prior role of President of Pharmaceutical Distribution. As part of the company's broader simplification efforts, Cardinal Health took actions to further streamline the Pharmaceutical Segment with efforts aimed to strengthen Pharmaceutical Distribution and Specialty, a key growth area, as well as bring together similar services under one team.
  • Cardinal Health announced the exit of its non-healthcare disposable gloves portfolio on September 13, 2022. The sale of this product portfolio is part of the company's ongoing simplification actions, which resulted in approximately $20 million in total inventory charges in the first quarter of fiscal year 2023.
  • Cardinal Health was named to Seramount's 2022 Inclusion Index, an honor recognizing companies committed to advancing diversity, equity and inclusion (DE&I) in the workplace.

Upcoming webcasted investor events

  • Evercore ISI Healthcare Conference at 8:50 a.m. EST, November 30, 2022
  • J.P. Morgan Healthcare Conference, January 9-12, 2023

Cardinal Health will host a webcast today at 8:30 a.m. EST to discuss first quarter results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at No access code is required. 

Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months.

About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With 50 years in business, operations in more than 30 countries and approximately 46,500 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at

Media: Erich Timmerman, [email protected] and 614.757.8231
Investors: Kevin Moran, [email protected] and 614.757.7942

1 GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.
2 During the first quarter of fiscal 2023 and 2022, the effective tax rate was (0.7) percent and 26.3 percent, respectively. The decrease in the effective tax rate reflects the impact of certain favorable discrete items.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

Cautions Concerning Forward-Looking Statements
This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks arising from ongoing inflationary pressures and supply chain constraints, including the risk that our plans to mitigate such effects may not be as successful as we anticipate and the possibility that costs to source certain personal protective or other equipment, increased costs for transportation, shipping, freight and commodities, reduced price or demand for certain products may result in additional inventory reserves or disruptions and may negatively impact our ability to meet our long-term guidance; the possibility that our Medical unit goodwill could be further impaired, due to the increase in global interest rates or possible unfavorable changes in the U.S. statutory tax rate; competitive pressures in Cardinal Health's various lines of business; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture with CVS Health; ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities, the risk that challenges to our plans to take tax deductions for opioid-related losses could adversely impact our financial results; risks arising from the Department of Justice investigation which we believe concerns our anti-diversion program and risks associated with the injunctive relief requirements under the national settlement, including the risk that we may incur higher costs or operational challenges in the implementation and maintenance of the required changes; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to import or export certain products or component parts and to comply with applicable regulations; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives or other business initiatives, such as the Medical Improvement Plan, including the possibility that they could fail to achieve the intended results. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This release reflects management's views as of November 4, 2022. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at

Schedule 1

Cardinal Health, Inc. and Subsidiaries 

Condensed Consolidated Statements of Earnings (Unaudited)

First Quarter

(in millions, except per common share amounts)



% Change


$        49,603

$        43,968

13 %

Cost of products sold



13 %

Gross margin



(2) %

Operating expenses:

Distribution, selling, general and administrative expenses



7 %

Restructuring and employee severance



Amortization and other acquisition-related costs



Impairments and (gain)/loss on disposal of assets, net 1



Litigation (recoveries)/charges, net



Operating earnings



(67) %

Other (income)/expense, net



Interest expense, net



(38) %

Loss on early extinguishment of debt


Earnings before income taxes



(70) %

Provision for/(benefit from) income taxes 2




Net earnings



(59) %

Less: Net earnings attributable to noncontrolling interests


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