Cardinal Health to Report Q1 Earnings: What's in Store?

Cardinal Health, Inc. CAH is scheduled to report  fiscal first-quarter 2025 results on Nov. 1, before the opening bell.In the last reported quarter, the company delivered an earnings surprise of 6.98%. CAH’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 13.47%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q1 Estimates for Cardinal HealthFor the fiscal first quarter, the consensus mark for earnings is pegged at $1.83 per share, indicating an improvement of 0.55% from the prior-year quarter’s reported figure. The same for revenues is pegged at $54.01 billion, implying a decline of 6% year over year.Factors to NoteFrom the fiscal third quarter of 2024, Cardinal Health started reporting its results under new operating segments — Pharmaceutical and Specialty solutions, Global Medical Products and Distribution (GMPD) segment, nuclear at-home and OptiFreight.The fourth quarter of fiscal 2024 witnessed an uptick in revenues in the pharmaceutical segment, which amounted to approximately $55.6 billion, up 13% on a year-over-year basis. The Pharmaceutical Distribution and Specialty Solutions segment’s performance highlighted branded pharmaceutical sales growth from existing customers. The segment's profit increased 8% during the fiscal fourth quarter. This momentum is likely to have continued in the fiscal first quarter as well. Moreover, the rising demand for GLP-1 medications is likely to have acted as a tailwind.Higher contributions from brand and specialty products, as well as the effectiveness of the generics program, drove the positive outcome of the pharmaceutical segment in the last reported quarter. This trend is likely to have continued in the to-be-reported quarter as well.The medical segment’s revenues grew 2% year over year in the last reported quarter, driven by growth in at-home Solutions and GMPD. The segment’s profit was $47 million in the fiscal fourth quarter. This upside was driven by an improvement in net inflationary impacts, including mitigation initiatives, which are likely to have boosted the medical segment’s results in the fiscal first quarter as well.In March 2024, Cardinal Health completed the acquisition of Specialty Networks, which is likely to expand the company’s offerings with physicians in the areas of urology, GI, and rheumatology. Specialty Networks has a proven platform in PPS analytics that the company is likely to further invest in fiscal 2025 and look to extend to other therapeutic areas such as oncology.Cardinal Health's integration of Specialty Networks has been progressing well, with positive feedback from providers and robust insight-generation capabilities for clinicians. This is expected to have accelerated the company's data and research opportunities with biopharma manufacturers. Leveraging Specialty Networks' neurology expertise to enhance oncology services aligns with Cardinal's strategy for Navista, its oncology practice alliance. The acquisition is poised to be a significant growth driver in the coming quarters, with further updates anticipated in the upcoming earnings report.Cardinal Health's recent opening of a 350,000-square-foot warehouse in South Carolina, equipped with the fastest order fulfillment system in the market, along with similar systems in Ohio and a planned Texas facility for 2025, is expected to drive growth and enhance operational efficiency. These new distribution centers are likely to aid the company’s supply chain, thus improving revenues. Cardinal Health is likely to provide further updates in this regard in the to-be-reported quarter.What the Zacks Model Unveils for Cardinal HealthOur proven model does not conclusively predict an earnings beat for Cardinal Health this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -6.04%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: Cardinal Health currently carries a Zacks Rank #2.Cardinal Health, Inc. Price and EPS Surprise Cardinal Health, Inc. price-eps-surprise | Cardinal Health, Inc. QuoteStocks to ConsiderHere are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycleMasimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS indicates an improvement of 33.3% from the year-ago reported figure.ACADIA Pharmaceuticals ACAD has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is slated to release third-quarter 2024 results on Nov. 6.ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS indicates a surge of 127.5% from the year-ago quarter’s figure.Biogen BIIB has an Earnings ESP of +1.97% and a Zacks Rank of 3 at present.BIIB’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 10.25%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Biogen Inc. (BIIB): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks