On Oct 4, we have upgraded our recommendation on
Cardinal Health, Inc.
) to Outperform from Neutral following its earnings and revenues
beats in the fourth quarter of fiscal 2013. This nation-wide drug
distributor and provider of services to pharmacies, healthcare
providers and manufacturers became a Zacks Rank #1 (Strong Buy)
stock shortly after reporting fourth quarter results.
ALIGN TECH INC (ALGN): Free Stock Analysis
BIO REFERNC LAB (BRLI): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
STRAUMANN (SAUHF): Get Free Report
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On Aug 1, Cardinal Health Inc. posted adjusted earnings per share
of 79 cents for fiscal 2013-fourth quarter, surpassing the
year-ago earnings by 8% and the Zacks Consensus Estimate of 77
cents by 2.6%. Adjusted earnings per share of $3.73 for fiscal
2013 also rose 16% from $3.21 a year ago, reflecting a beat of
5.7% over the Zacks Consensus Estimate of $3.53.
Revenues in the quarter went down 5% to $25,420 million, due to
lower revenues from the Pharmaceutical segment. Nonetheless, the
top line beat the Zacks Consensus Estimate of $24,506 million.
Similarly, for the fiscal year, revenues declined 6% to $101,093
million but exceeded the Zacks Consensus Estimate of $100,237
Following the release of fourth quarter results, the Zacks
Consensus Estimate for 2014 earnings went up by a penny to $3.57
per share. However, the Zacks Consensus Estimate for 2015
earnings remained unchanged at $3.96 per share.
Apart from strong fourth quarter results, Cardinal Health's
growth outlook looks impressive. The company is relatively
insulated from macro economic uncertainty and a weak economy
being one of the largest distributors of pharmaceuticals and
Further, CAH's generics business shows continuing signs of
strength. Growth in this business continues to surpass the market
growth rate, especially the company's Source program.
Other Stocks to Look For
Apart from CAH, other medical supplies stocks that are currently
performing well include
STRAUMANN HLD N AKT
) with a Zacks Rank #1 (Strong Buy), and
Align Technology Inc.
Bio-Reference Laboratories Inc.
), both with a Zacks Rank #2 (Buy).