Cardinal Health (CAH) - Get Cardinal Health, Inc. Report shares on Thursday were higher after the health-care-products and -services provider reported fiscal-first-quarter adjusted results that topped analyst estimates, even as it took a $1 billion charge related to opioid litigation.
The Dublin, Ohio, company narrowed its first-quarter loss to 86 cents a share from $16.65 a share in the year-earlier quarter.
Adjusted earnings of $1.51 a share rose 19% year over year. Revenue reached $39.07 billion, a 5% increase,
Analysts surveyed by FactSet were expecting a GAAP loss of 84 cents a share, or adjusted earnings of $1.13 a share, on revenue of $38.16 billion.
"We delivered strong performance in both segments due to progress against our growth initiatives and disciplined expense management," Cardinal Health Chief Executive Mike Kaufmann said in a statement.
The company reported a $1.02 billion charge after the company, along with AmerisourceBergen (ABC) - Get AmerisourceBergen Corporation Report and McKesson (MCK) - Get McKesson Corporation Report, proposed paying a total of $21 billion in order to settle potential opioid lawsuits last year.
That proposal was part of a settlement framework that was negotiated with four state attorneys general.
Cardinal Health estimates that its total pretax accrual for the lawsuits totaled $6.59 billion as of the end of the quarter in September.
For fiscal 2021, Cardinal expects earnings to range between $5.65 and $5.95 per share, up from its previous expectation between $5.25 and $5.65 per share.
Analysts surveyed by FactSet are expecting earnings of $5.47 a share for the fiscal year.
Cardinal Health shares at last check were rising 5.8% to $52.31.