Cardinal Health says it expects fiscal 2007 adjusted EPS at the "top end" of the $3.32 to $3.40 range it announced April 27. Analysts on average were expecting $3.40. It reiterated its 2008 adjusted EPS forecast of $3.95 to $4.15, compared to analysts' expectation of $4.11. Shares of Cardinal gained as much as 1.3% intra-day, but closed down 0.2% to $69.43 in normal trading Tuesday. Cardinal said its 2008 forecast includes the dilutive impact of its recent acquisition of VIASYS Healthcare, which is expected to close this week. In a press release, Cardinal listed long-term (FY'08 - FY'10) financial goals including: Revenue +8-10%, Operating Earnings +10-13% and EPS +12-16%. It plans to return up to 50% of operating cash flow via share repurchases and dividends. Cardinal reports Q4 earnings August 9. Its fiscal year 2008 begins July 1.
Sources: Press release, Reuters
Commentary: Cardinal Health: Litigation, Sale and Acquisition Leave 2007 EPS Unchanged • Cardinal Health to Buy VIASYS Healthcare for $1.5B, 35% Premium • Biotech Buyout Frenzy Continues
Stocks/ETFs to watch: Cardinal Health Inc. (NYSE:CAH). Competitors: McKesson Corp. (NYSE:MCK), AmerisourceBergen Corp. (NYSE:ABC). ETFs: Health Care Select Sector SPDR (NYSEARCA:XLV)
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.