Earnings Preview: Cardinal Health

Cardinal Health (CAH) is expected to report Q1 earnings before market open Wednesday Oct. 29 with a conference call scheduled for 8:30 am.

Guidance

Analysts are looking for a profit of 70c on revenue of $22.86B. The consensus is 70c to 73c for EPS, and $22.23B to $23.23B for revenue, according to First Call. For Q4, the company reported EPS 97c vs. consensus 95c, and Q4 revenue $22.93B vs. consensus $23.1B.

Analyst Views

In August the company gave Q1 EPS guidance of 70c. Positive drivers this quarter could be growth in health care supply chain services, while negative influences could be difficult competition in the drug distribution market.

In a September research note J.P. Morgan said it sees compelling values at the current levels, and believes the potential spin-off of the company's clinical and medical products segment could unlock value for shareholders. The firm's sum-of-parts analysis yields a share price of $65.91.