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Cardinal Health Inc. (CAH+0.95%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
Revenue for the three months ended December 31, 2024, decreased 4 percent to $55.3 billion from the comparative prior-year period. This decrease was primarily due to the expiration of the OptumRx contracts, partially offset by growth in branded and specialty pharmaceutical sales.
GAAP operating earnings for the three months ended December 31, 2024, increased 9 percent to $549 million. This was attributed to enterprise-wide cost savings and growth from BioPharma Solutions, partially offset by transaction and integration costs.
Non-GAAP operating earnings for the three months ended December 31, 2024, increased 9 percent to $635 million, driven by cost savings and growth from BioPharma Solutions.
GAAP diluted EPS for the three months ended December 31, 2024, increased to $1.65, primarily due to factors impacting GAAP operating earnings.
Non-GAAP diluted EPS for the three months ended December 31, 2024, increased 2 percent to $1.93, driven by factors impacting non-GAAP operating earnings.
Cash and equivalents were $3.8 billion at December 31, 2024, compared to $5.1 billion at June 30, 2024. Net cash used in operating activities was $2.0 billion, impacted by the unwinding of negative net working capital associated with the OptumRx contracts.
On December 2, 2024, Cardinal Health completed the acquisition of Integrated Oncology Network for $1.1 billion in cash.
On January 30, 2025, Cardinal Health completed the acquisition of a 73 percent ownership interest in GI Alliance for approximately $2.8 billion in cash.
Cardinal Health announced an agreement to acquire Advanced Diabetes Supply Group for approximately $1.1 billion in cash, subject to regulatory approvals.
The expiration of the OptumRx contracts adversely impacted results of operations, including segment profit, financial condition, and cash flows during the six months ended December 31, 2024.
Pharma segment revenue for the three months ended December 31, 2024, decreased 4 percent to $50.8 billion, primarily due to the expiration of the OptumRx contracts.
GMPD segment revenue for the three months ended December 31, 2024, increased 1 percent to $3.2 billion, primarily due to higher volumes from existing customers.
Other revenue for the three months ended December 31, 2024, increased 13 percent to $1.3 billion, due to growth across at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics.
Gross margin for the three months ended December 31, 2024, increased 5 percent to $1.9 billion, primarily due to growth from BioPharma Solutions and branded pharmaceutical products.
SG&A expenses for the three months ended December 31, 2024, increased 3 percent to $1.3 billion, primarily due to the ION acquisition and costs to support sales growth.
Pharma segment profit for the three months ended December 31, 2024, increased 7 percent to $531 million, primarily due to growth from BioPharma Solutions.
GMPD segment profit for the three months ended December 31, 2024, increased to $18 million, primarily due to cost optimization initiatives.
Other segment profit for the three months ended December 31, 2024, increased 11 percent to $118 million, primarily due to the performance of OptiFreight Logistics.
Interest expense for the three months ended December 31, 2024, increased to $35 million, primarily due to new debt financing.
The effective tax rate was 21.4 percent for the three months ended December 31, 2024.
Cardinal Health continues to focus on acquisitions, cost savings, and growth in its pharmaceutical and medical product segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cardinal Health Inc. quarterly 10-Q report dated January 30, 2025. To report an error, please email earnings@qz.com.