Cardinal Health Inc.
) revealed that it has renewed its three-year supplier agreement
with St. Paul, Minn.-based medical supplies provider Prime
Therapeutics. CAH supplies pharmaceuticals for Prime's pharmacy
home delivery service, PrimeMail, and Prime Therapeutics
Prime manages more than $15 billion in prescription drugs per
year and serves about 23 million members. It is collectively
owned by 13 Blue Cross and Blue Shield Plans, subsidiaries or
affiliates of those plans.
Prime's specialty pharmacy helps boost the health of people
having rheumatoid arthritis, hepatitis C and multiple sclerosis,
through personalized care management programs. As part of the
agreement, CAH will continue to supply additional supply chain
optimization services to boost operational efficiency of Prime.
Cardinal Health posted solid fiscal 2014 first-quarter adjusted
earnings of $1.10 per share, which were up 36% from 81 cents
earned in the year-ago quarter. Earnings per share comfortably
surpassed the Zacks Consensus Estimate of 85 cents by an
impressive margin of 29.4%.
Revenues in the first quarter went down 5% to $24,523 million,
due to lower revenues from the Pharmaceutical segment.
Nonetheless, the top line beat the Zacks Consensus Estimate of
For fiscal 2014, CAH raised its forecast for adjusted earnings
per share to the band of $3.62 to $3.72 from the earlier guidance
of $3.45 to $3.60. Management cited the company's outstanding
fiscal first-quarter results along with efficient operating
performance as the reason behind the upgraded guidance. The
current Zacks Consensus Estimate of $3.69 for the year lies
within the outlook band.
Cardinal Health currently has a Zacks Rank #2 (Buy). Other stocks
in the medical/dental supplies industry that are currently worth
a look include
Align Technology Inc.
Merit Medical Systems, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
MERIT MEDICAL (MMSI): Free Stock Analysis
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