Shares of Cardinal Health (CAH) - Get Report surged Monday after the health care giant raced past earnings estimates for the first three months of 2020 as demand for medical supplies and drugs soared amid the Covid-19 pandemic.
Cardinal's stock price jumped 7.76% to $53.75 a share in premarket trading after the pharmaceutical and medical supplies wholesaler and health care services provider reported adjusted earnings of $1.62 a share.
That represented a 2% gain over the first three months of 2019, when Cardinal reported earning per share of $1.59, and came in well above the $1.43 a share estimate of analysts surveyed by Zacks Investment Research.
Cardinal's revenue for its fiscal third quarter ended March 31 also came in higher than last year, hitting $39.2 billion, for an 11% gain over the same period last year, when the health care conglomerate reported revenue of $35.2 billion.
Cardinal's revenue beat the estimate of analysts polled by Zacks, which had forecast a more modest, 4.7% gain in revenue to $36.9 billion.
Sales in the company's pharmaceutical division, along with some help from its specialty solutions unit, jumped 12%, to $35.1 billion, Cardinal said in a press release.
Revenue in Cardinal's medical division rose 5% to $4.1 billion, buoyed by increased sales of medical supplies and a rise in demand for services provided by Cardinal Heath at Home.
Overall, profits from Cardinal's medical division increased 15% to $178 million due in part to "benefits from global manufacturing and cost savings initiatives," the company said.