Cardinal Health's Q1 FY2025 Results: What to Expect

Cardinal Health, a leading global healthcare services and products company, is set to announce its first-quarter fiscal year 2025 results on November 1. Investors and analysts will be closely watching the company's performance, particularly in light of its strong fiscal year 2024 results. Here's a preview of what investors can expect from Cardinal Health's Q1 FY2025 earnings report.


In fiscal year 2024, Cardinal Health reported record financial results, with revenues of $226.8 billion, an 11% increase from the previous year. GAAP operating earnings reached $1.2 billion, and non-GAAP operating earnings increased 16% to $2.4 billion. The company's Pharmaceutical and Specialty Solutions segment was a significant driver of growth, with revenues increasing 11% to $210.0 billion.


Looking ahead to Q1 FY2025, investors will be interested in the performance of the Pharmaceutical and Specialty Solutions segment. This segment contributed significantly to Cardinal Health's overall growth in fiscal year 2024 and is expected to continue its strong performance in the current quarter. The segment's growth is driven by brand and specialty pharmaceutical sales growth from existing customers and positive generics program performance.


Another key area of focus will be the progress of the GMPD Improvement Plan. This plan aims to improve the performance of the Global Medical Products and Distribution segment, which has faced challenges in the past. The segment's profit increased by $40 million to $47 million in the fourth quarter of fiscal year 2024, driven by an improvement in net inflationary impacts and mitigation initiatives. Investors will be looking for continued progress in this segment's performance in Q1 FY2025.


Changes in the non-GAAP effective tax rate and share count will also influence Cardinal Health's Q1 FY2025 EPS. In fiscal year 2024, the company's non-GAAP effective tax rate was 21.7%, and the diluted weighted average shares outstanding were 244 million. Investors will be interested in any updates to these metrics and their impact on EPS.


Finally, the acquisition of Specialty Networks is expected to have a positive impact on Cardinal Health's Q1 FY2025 results. Specialty Networks is an integrated multi-specialty platform that creates clinical and economic value for independent practices. The acquisition is expected to enhance Cardinal Health's offerings and drive growth in the coming quarters.


In conclusion, Cardinal Health's Q1 FY2025 results will be closely watched by investors and analysts. The performance of the Pharmaceutical and Specialty Solutions segment, progress on the GMPD Improvement Plan, changes in the non-GAAP effective tax rate and share count, and the impact of the Specialty Networks acquisition will all be key factors in determining the company's future prospects. As Cardinal Health continues to execute on its strategic initiatives, investors can expect a strong performance in the coming quarters.