DUBLIN, Ohio - Cardinal Health (NYSE:CAH), a global healthcare services company, announced today that it has made significant progress in its ongoing business and portfolio review, as well as an update to its fiscal year 2024 non-GAAP diluted earnings per share (EPS) guidance. The company has completed a review of growth businesses within its Medical Segment, decided to invest further in at-Home Solutions and OptiFreight® Logistics, and is reorganizing its leadership structure to prioritize core operational execution.
The review of Cardinal Health's at-Home Solutions, a leading home healthcare medical supplies provider with $2.6 billion in revenue, and OptiFreight® Logistics, a $250 million revenue healthcare logistics provider, concluded that further development in these areas would significantly enhance long-term shareholder value. The company is investing in a new distribution center in Texas and has opened a site in Ohio, with another expansion in South Carolina set to open later this year.
Cardinal Health's Global Medical Products and Distribution business review is ongoing, with a focus on the Medical Improvement Plan to drive operational performance.
Effective January 1, 2024, Cardinal Health began operating under a new enterprise operating and segment reporting structure, which will be reflected in its financial reporting starting in the third quarter of fiscal 2024. The structure includes two reportable segments: Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD). Additionally, Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight® Logistics will be reported as Other.
The company has updated its fiscal 2024 non-GAAP diluted EPS guidance to the high end of the $6.75 to $7.00 range, primarily due to favorable outcomes in Interest and Other and Diluted Weighted Average Shares Outstanding, supported by strong cash flow and an incremental share repurchase during the second quarter of fiscal 2024.
The company reiterated its long-term financial targets, reflecting 12% to 14% growth in non-GAAP diluted EPS and provided pro-forma long-term targets for its updated segment reporting structure.
This update is based on a press release statement from Cardinal Health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.