The Dublin, Ohio, health care supplier said it expects earnings for fiscal 2006 ending June 30 to be in the upper half of a previously provided range of $3.30 to $3.55 a share, excluding special items. The company said it expects stock-based compensation expense to take a hit of about 36 cents a share out of that figure. Analysts surveyed by Thomson Financial were looking for $3.11.
Cardinal also said it expects to make around $3.60 a share for fiscal 2007, excluding special items but including stock-based compensation. Analysts were looking for $3.66.
The company said it sees fiscal 2007 revenue growth at the high end of its long-term target of 8%-10%. Analysts were looking for 7.3%.
"After completing a thorough review of our businesses and global operations, we remain convinced of the tremendous potential Cardinal Health has to help improve productivity and the safety of health care worldwide," said CEO Kerry Clark. "We have made progress during fiscal 2006 in transforming Cardinal Health and see continued momentum as we transition to fiscal 2007. In '07, we will continue to focus on organic growth and using our scale to reduce costs across the enterprise, which we expect will result in strong revenue and earnings- per-share growth for the year."
In after-hours trading Monday, Cardinal rose 20 cents to $66.59.