NEW YORK (TheStreet) -- Shares of Cardinal Health (CAH) - Get Report were down 11.11% to $66.49 on heavy trading volume mid-Friday afternoon after rival pharmaceutical distributor McKesson (MCK) lowered its earnings outlook for fiscal 2017 amid weak pricing trends.
McKesson now expects to report adjusted earnings between $12.35 and $12.85 a share for fiscal 2017. The company had previously anticipated adjusted earnings between $13.43 and $13.93 per share for the year.
CEO John Hammergren partly blamed softness in pricing and heightened competition for the lowered expectations.
"What we began to see more recently is competitive activity that is broader than our original expectations, more aggressive, and across several areas of our U.S. pharmaceutical business," Hammergren said on the earnings conference call.
About 9.63 million shares of Cardinal Health have been traded so far today, well above the company's average trading volume of roughly 2.08 million shares a day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Cardinal Health's strengths such as its revenue growth, impressive record of earnings per share growth, notable return on equity, increase in net income and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: CAH
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.