Cardinal Health Third Quarter Fiscal 2015 Earnings Preview
Dublin, Ohio-based healthcare services company likely to beat analysts’ expectations, just like preceding quarters.
Cardinal Health(NYSE:CAH), a Dublin, Ohio based, healthcare services company, is likely to deliver another bang in the buck to investors, as the company is set to announce its third quarter earnings on April 30th.
In the previous quarter, the company delivered a surprise when it delivered an 8.11% increase in its earnings on the support of strong sales growth. In addition, many believe that the third quarter will not be any different either, if not better.
Last month, Cardinal Health acquired Cordial unit of Johnson and Johnson, which will provide a strong footprint in the global arena, giving it access to more sales opportunities that come with it. In addition, the company has entered into a strategic contract with Henry Schein last year, along with entering a production agreement with Bayer Healthcare just around last quarter. There are reports that the company has also acquired Nashville specialty pharma sector, Metro Medical Supply Inc., at an undisclosed value.
On top of all this, Cardinal Healthcare is relying on growth of new and existing customers from China, despite the slowdown in the economy there, but with the growing number of people in the region starting to age and seek medical care, which seems like a fantastic proposition to further expand market share and access there.
Further reinforcing the positive sentiment surrounding the company is that it has added almost 400 jobs at its home base of Ohio since last spring, boosting the current workforce from around 4200 to more than 4600. It is a sign of growing confidence in the economic environment, despite the apparent slowdown being witnessed. However, the spokesperson stated that this new job growth is because of adjusting numbers, talent, and expertise to better align with customer’s need.
Overall, the positive fundamentals from the past several months show that the company is galloping in the right direction, though it had to pay around $27 million on charges that it illegitimately monopolized around 25 medical stores for the sale and distribution of certain pharmaceuticals, on top of forcing hospitals to pay inflated prices for its drugs.
Cardinal’s stock price ended at $90.48, a gain of 1.06%.