Cardinal Health Q1 Profit Up,raises FY Profit View; To Buy Back $1 Bln Of Shares

(RTTNews) - Cardinal Health Inc. (CAH) reported that its first-quarter net earnings increased to $339 million or $0.99 per share, from $271 million or $0.79 per share in the same quarter last year. The latest-quarter earnings per share include contribution of approximately $0.18 related to settlements with tax authorities for certain outstanding audit periods.

Quarterly earnings from continuing operations were $340 million, up from $272 million last year.

Non-GAAP earnings from continuing operations improved to $378 million from $281 million last year. Non-GAAP earnings from Continuing Operations grew to $1.10 per share from the prior year's $0.81 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share. Analysts' estimates typically exclude special items. But, Revenues for the quarter declined to $24.52 billion from $25.89 billion in the prior year quarter. Fourteen analysts had consensus revenue estimate of $22.76 billion for the quarter.

Based on its first-quarter results and the strength of its operating earnings performance, the company said it raised its fiscal 2014 non-GAAP earnings per share from continuing operations outlook to a range of $3.62 to $3.72 from the prior estimate of $3.45 to $3.60 per share. Analysts expect the company to report earnings of $3.58 per share for fiscal 2014.

"Recognizing our strong operating cash flow and the strength of our balance sheet, the board has approved a new, three-year authorization to repurchase up to $1 billion of Cardinal Health common shares," said George Barrett, chairman and chief executive officer.

The company said that the share repurchase program is in addition to the existing share repurchase program approved in August 2012, of which $350 million remains available.