=Cardinal Health (CAH) reported earnings on Tue 7 Feb 2017 (b/o)

Cardinal Health beats by $0.10, misses on revs; lowers FY17 EPS, in-line :

• Reports Q2 (Dec) earnings of $1.34 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.24; revenues rose 5.4% year/year to $33.15 bln vs the $33.58 bln Capital IQ Consensus. 
  • Second-quarter revenue for the Pharmaceutical segment increased 5% to $29.7 billion due to growth from existing Pharmaceutical Distribution customers and strong performance from the Specialty business. Segment profit for the quarter decreased 14% to $537 million. This decrease was driven by generic pharmaceutical pricing and, to a lesser extent, the previously announced loss of a large Pharmaceutical Distribution customer. This was partially offset by solid performance from Red Oak Sourcing.
  • Second-quarter revenue for the Medical segment increased 8% to $3.4 billion, driven by contributions from net new and existing customers. Segment profit increased 50% to $159 million due to the contribution from Cardinal Health Brand products, which includes Cordis. The increase reflects the $21 million unfavorable impact of the Cordis-related inventory fair value step-up in the second quarter of fiscal year 2016. Excluding this step-up, year-over-year Medical segment profit growth was 25%.
• Co issues in-line guidance for FY17, lowers EPS to $5.35-5.50 from $5.40-5.60, excluding non-recurring items, vs. $5.45 Capital IQ Consensus Estimate.