By RTT News,
August 04, 2014, 07:45:00 AM EDT
(RTTNews.com) - Healthcare services company Cardinal Health Inc. ( CAH ) Monday reported a profit for the fourth quarter, compared to a loss last year as the prior year was hit by hefty impairments. Adjusted earnings and revenues topped estimates.
Net earnings totaled $234 million or $0.68 per share, compared to a loss of $586 million or $1.72 per share last year. The prior-year results included impairments and loss on disposal of assets of $832 million, associated with the company's nuclear division.
Non-GAAP earnings per share from continuing operations were $0.83, in comparison with $0.79 last year. On average, 19 analysts polled by Thomson Reuters expected earnings of $0.81 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue declined 10 percent to $22.894 billion from $25.420 billion in the prior year, and climbed 12 percent excluding the impact of the Walgreens contract expiration. Analysts expected revenues of $21.88 billion.
The Pharmaceutical segment's revenue decreased 12 percent to $20.1 billion, and segment profit decreased 5 percent due to the continuing impact of the expiration of the Walgreens contract.
Excluding the impact of Walgreens, revenue for the business climbed 13 percent, driven by organic sales growth, growth in the company's Specialty Solutions division, and China.
Revenue for the Medical segment increased 4 percent to $2.8 billion, amid growth in existing customers, including solid growth in strategic hospital network accounts, and acquisitions. Segment profit decreased 8 percent, primarily due to increase in enterprise incentive compensation and market pressures in Canada.
Cost of products sold declined 10 percent from last year to $21.638 billion.
Looking ahead, the company's fiscal year 2015 outlook for non-GAAP earnings per share from continuing operations is $4.10 to $4.30. Analysts expect earnings of $4.25 per share for the year.
CAH closed up 1 percent at $72.37 on Friday.
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