Cardinal Health cuts earnings outlook for Medical segment, sees $25 million in inventory charges
Cardinal Health Inc. cut its fiscal first-quarter earnings outlook for its Medical segment, citing ongoing simplification efforts that are expected to result in $25 million in inventory charges related to its gloves portfolio. The company now expects a Medical segment loss of $55 million to $25 million, compared with a previous guidance range for a loss of $20 million to a profit of $20 million. The health care services and products company said the expected total charge includes the sale of certain disposable gloves that are primarily used in non-health care industries. Separately, the company affirmed its fiscal 2023 adjusted earnings-per-share outlook of $5.05 to $5.40, which surrounds the FactSet consensus of $5.27. The stock, which is still inactive in premarket trading, has run up 34.1% over the past three months, while the SPDR Health Care Select Sector ETF has gained 8.0% and the SP 500 has rallied 9.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.
Cardinal Health cuts earnings outlook for Medical segment, sees $25 million in inventory charges
Cardinal Health Inc. cut its fiscal first-quarter earnings outlook for its Medical segment, citing ongoing simplification efforts that are expected to result in $25 million in inventory charges related to its gloves portfolio. The company now expects a Medical segment loss of $55 million to $25 million, compared with a previous guidance range for a loss of $20 million to a profit of $20 million. The health care services and products company said the expected total charge includes the sale of certain disposable gloves that are primarily used in non-health care industries. Separately, the company affirmed its fiscal 2023 adjusted earnings-per-share outlook of $5.05 to $5.40, which surrounds the FactSet consensus of $5.27. The stock, which is still inactive in premarket trading, has run up 34.1% over the past three months, while the SPDR Health Care Select Sector ETF has gained 8.0% and the SP 500 has rallied 9.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.