Earnings Preview: Cardinal Health

Cardinal Health (CAH) is expected to report Q4 earnings before market open Thursday, Aug. 7, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 95c on revenue of $23.17B. The consensus is 93c to $1.00 for EPS, and $23.04B to $23.42B for revenue, according to First Call.

Analyst Views

For Q3, the company reported EPS of $1.08 vs. a consensus of $1.01, and revenue of $22.9B vs. a consensus of $23.42B. The company expects FY08 EPS $3.75 to $3.85 vs. a consensus of $3.78. Positive catalysts for this quarter's earnings continue to be overseas growth and increases in medical product sales from the acquisition of Viasys. Also, strength in its drug dispensing division should contribute to revenue.

On July 9, Baird raised its 2008-2009 EPS estimates. The firm feels the stock has an attractive valuation and raised its price target to $71 with an Outperform rating. On July 30, Raymond James downgraded the stock to Market Perform from Strong Buy.