Cardinal Health (CAH) Stock Soars on Earnings Beat, Guidance

Cardinal Health (CAH) stock is gaining after the company reported better than expected fiscal 2016 first quarter financial results and raised its fiscal 2016 earnings guidance.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Cardinal Health (CAH) - Get Report stock is rising by 4.88% to $86.21 on heavy trading volume on Monday afternoon, following the company's financial results, which surpassed estimates for the fiscal 2016 first quarter.

This morning before the market open, the health care service company reported earnings of $1.38 per share for the latest quarter, beating estimates by 28 cents.

Revenue increased by 17% year-over-year to $28.06 billion for the quarter, surpassing expectations of $27.18 billion.

Pharmaceutical segment revenue increase by 19% to $25.1 billion, driven by growth of new customers and acquisitions.

"We are off to a very strong start to our fiscal 2016," CEOGeorge Barrett said in a statement. "Our pharmaceutical segment continued its momentum into the first quarter, and the medical segment strengthened its position in strategically critical areas."

Additionally, Cardinal Health increased its fiscal 2016 earnings guidance to $5.15 to $5.35 per share from the previous guidance of $4.85 to $5.05 per share.

So far today, 3.47 million shares of Cardinal Health have exchanged hands, compared with its average daily volume of 2.54 million shares.

Separately, TheStreet Ratings team rates CARDINAL HEALTH INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate CARDINAL HEALTH INC (CAH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

You can view the full analysis from the report here: CAH

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