Cardinal Health (CAH) has emerged as a leading healthcare dividend aristocrat stock, outperforming its competitors, with significant returns over the past years. The board of directors approved the increase to quarterly dividend, while its holdings have been reduced by The Manufacturers Life Insurance Company. The company has faced a warning from US FDA over marketing unapproved devices but has maintained its position as a valuable component in portfolios. Notably, it lost its contracts with UnitedHealth's OptumRX which impacted stock prices.
However, CAH presented strong value and momentum characteristics. While the contract with OptumRx ended, it launched a new logistics management tool. Despite mixed quarterly results, its stock hit a 52-week high. Amidst non-renewal occurrences, Cardinal Health reaffirmed its Fiscal 2024 non-GAAP EPS Guidance and long-term targets. The company however missed Q3 2024 expectations and lowered the medical unit's profit forecast.
Significantly, CAH acquired Specialty Networks and its PPS Analytics platform as well as announced the new location for a pharmaceutical distribution center for over-the-counter products. The company reported robust revenue growth and raised Fiscal 2024 outlook, signaling a long-term opportunity.
Despite losing OptumRx contracts, Cardinal Health was able to report strong Q3 earnings and revenue, successfully beat estimates, raised EPS guidance for Fiscal 2024, and purchased a private tech firm for $1.2 billion. In addition, Cardinal Health approved science-based climate targets, asserting its evolving focus across the supply chain.
Cardinal Health CAH News Analytics from Wed, 18 Oct 2023 07:00:00 GMT to Sun, 09 Jun 2024 10:46:32 GMT - Rating 5 - Innovation 7 - Information 9 - Rumor 3
