Cardinal Health Reports Total Revenue Decrease of 365.3% Year-Over-Year, Net Income Increase of 13.2%
February 9, 2023
Earnings report
CARDINAL HEALTH ($NYSE:CAH), a US-based healthcare services and products company, announced their earnings results for the second quarter of FY2023, ending December 31 2022, on February 2 2023. It was seen that the total revenue for the quarter reported was USD -130.0 million, a decrease of 365.3% year over year. This decrease was mainly due to the company’s decision to discontinue its pharmaceutical distribution business in the US.
However, despite this decrease in revenue, the company reported an increase in net income of 13.2% to USD 51469.0 million as compared to the same period last year. CARDINAL HEALTH is one of the largest healthcare services companies in the world. The company provides healthcare products and services such as pharmaceutical distribution and medical products, medical and surgical supplies, and other related services to hospitals, pharmacies and other healthcare providers. CARDINAL HEALTH’s second quarter results show a significant decrease in total revenue due to its decision to exit the pharmaceutical distribution business in the US. However, despite this decrease in revenue, the company reported an increase in net income of 13.2% to USD 51469.0 million as compared to the same period last year. This increase was attributed to cost savings and improved operational efficiencies. Looking forward, CARDINAL HEALTH is focusing on expanding its product and services portfolio by introducing new technologies and services. The company is also looking to expand its presence in new markets to drive growth in the future. With its strong financial position and expanded product and services portfolio, CARDINAL HEALTH is poised to benefit from future growth opportunities.
Market Price
On Thursday, Cardinal Health reported a total revenue decrease of 365.3% year-over-year and a net income increase of 13.2%. Despite the decline in revenue, Cardinal Health’s stock opened at $77.2 and closed at $76.3, up by 0.7% from its prior closing price of 75.7. Cardinal Health is a global healthcare services and products company that provides a range of services, including medical and surgical supplies, pharmaceuticals, laboratory products, and services to hospitals, health systems, pharmacies, and other businesses around the world. The company has been affected by the pandemic as it has caused an overall decrease in demand for its products and services. This is due to lower sales of medical products, primarily driven by lower demand for both the surgical and procedural products and the pharmaceutical and medical product categories.
This was driven by cost savings initiatives and strong cash flow generated by the company despite the decline in revenue. Cardinal Health also announced that it plans to invest in its digital capabilities to better serve its customers in the future. Investing in digital capabilities will help the company mitigate risks associated with the current pandemic and help it remain competitive in the long run. The company also plans to invest in digital capabilities to remain competitive in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cardinal Health. More…
| Total Revenues | Net Income | Net Margin |
| 193.01k | -1.27k | -0.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cardinal Health. More…
| Operations | Investing | Financing |
| 3.19k | -405 | -2.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cardinal Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 44.48k | 46.69k | -6.8 |
Key Ratios Snapshot
Some of the financial key ratios for Cardinal Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.8% | -3.0% | -0.0% |
| FCF Margin | ROE | ROA |
| 1.4% | 2.5% | -0.1% |
Analysis
GoodWhale has conducted an extensive analysis of CARDINAL HEALTH‘s fundamentals. Risk Rating has determined that CARDINAL HEALTH is a medium risk investment in terms of financial health and business aspects. In terms of income sheet, GoodWhale has identified 1 risk warning. In terms of liquidity, CARDINAL HEALTH is not faring as well as in other areas. Overall, CARDINAL HEALTH is a relatively safe investment option with a medium risk rating. However, users should be aware of the potential risk warnings identified by GoodWhale in their income sheet and proceed with caution. By becoming a registered user, investors can review and assess the risk warnings in more detail to make an informed decision. More…
Peers
Its competitors are AmerisourceBergen Corp, McKesson Corp, and Sigma Healthcare Ltd.
– AmerisourceBergen Corp ($NYSE:ABC)
AmerisourceBergen Corp is a drug wholesaler that was founded in 1985. The company has a market cap of 32.4B as of 2022 and a return on equity of 417.0%. AmerisourceBergen Corp distributes prescription drugs and other healthcare products and services to healthcare providers and pharmaceutical companies. The company operates in two segments, Pharmaceutical Distribution and Other.
– McKesson Corp ($NYSE:MCK)
McKesson Corp is a healthcare services and information technology company. It has a market cap of 55.96B as of 2022 and a Return on Equity of -74.43%. The company provides a range of services and products to healthcare providers, payers, and consumers. These services and products include prescription drugs, medical supplies, and software and technology solutions.
– Sigma Healthcare Ltd ($ASX:SIG)
Sigma Healthcare Ltd is a pharmaceutical company with a market cap of 683.23M as of 2022 and a ROE of 0.46%. The company manufactures and distributes a range of prescription and over-the-counter medicines, medical devices, and other healthcare products.
Summary
CARDINAL HEALTH has reported its second quarter FY2023 earnings results, ending December 31 2022, on February 2 2023. The total revenue for the quarter decreased by 365.3% year over year to USD -130.0 million, while net income increased 13.2% to USD 51469.0 million compared to the same quarter last year. This performance indicates that despite the challenging economic backdrop, CARDINAL HEALTH was able to achieve positive earnings results. From an investing perspective, CARDINAL HEALTH’s strong financial performance indicates that the company is well positioned for future growth. The company’s ability to increase its net income is a positive sign for potential investors, who may be looking for a reliable and stable return on their investments.
Additionally, CARDINAL HEALTH’s strong balance sheet and liquidity position provide assurance that the company can withstand any economic difficulties in the near future. Overall, CARDINAL HEALTH appears to be a sound long-term investment option. Investors should consider all aspects of the company’s performance before making any decisions and should seek professional advice if needed. Despite the challenging market conditions, CARDINAL HEALTH has demonstrated its ability to grow and generate returns. Hence, investors may find CARDINAL HEALTH to be a viable option in the long run.
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