The Pharmaceutical sector has been in such fluctuation since the beginning of the COVID-19 outbreak that supplies like Cardinal Health and others have seen growth in revenue due to the vast demand of PPE required from countries around the world.
- Revenue increased 5% to $41.5 billion
- GAAP(1) operating earnings were $461 million, GAAP diluted EPS were $2.13
- Non-GAAP operating earnings decreased 3% to $628 million, non-GAAP diluted EPS increased 14% to $1.74
Cardinal Health (NYSE: CAH) reported second-quarter fiscal year 2021 revenue of $41.5 billion, which is an increase of 5% from the second quarter of last year. Second-quarter GAAP operating earnings increased 38% to $461 million, the was primarily due to the beneficial comparison to the prior-year charge related to voluntary surgical gown recalls. GAAP diluted earnings per share (EPS) increased to $2.13, primarily due to the tax effect of a self-insurance loss.
Non-GAAP operating earnings decreased 3% to $628 million in the quarter, and this decrease included a modest net negative impact from COVID-19. The Pharmaceutical segment was adversely affected by COVID-19, while the Medical segment experienced a net positive impact. Non-GAAP diluted EPS increased 14% to $1.74 in the quarter, benefiting from a lower non-GAAP effective tax rate.
“As we collectively navigate the pandemic, we remain committed to supporting customers, patients, and communities around the world. Our second-quarter results demonstrate our resilient business model, strong fundamentals, and the adaptability of our dedicated employees. We remain focused on optimizing our core businesses, investing in key areas, and efficiently deploying capital to drive long-term, sustainable growth.”Mike Kaufmann, CEO of Cardinal Health
Second-quarter revenue for the Pharmaceutical segment increased 4% to $37.2 billion, driven by sales growth from Pharmaceutical Distribution and Specialty Solutions customers.
Pharmaceutical segment profit decreased 11% to $413 million in the second quarter, due to the adverse impact of COVID-19-related volume declines, primarily in the company’s generics program and Nuclear and Precision Health Solutions business. This was partially offset by a higher contribution from brand sales mix.
Given the current global fight against COVID-19, we expect the supply of PPE equipment from companies like Cardinal Health to continue to grow.