Cardinal Health Earnings Forecast Shows Decline in Expected EPS

The report highlights Cardinal Health's anticipated earnings decline, with EPS expected at $1.64, down 5.2% year-over-year. Revenue estimates also reflect a decrease, raising concerns among investors as they await the upcoming earnings report.

Date: 17-09-2024

AI Rating: 4

Cardinal Health (CAH) is in the spotlight with upcoming earnings expectations, showing signs of potential weak performance. The report forecasts earnings per share (EPS) of $1.64, indicating a year-over-year decline of 5.2%. This negative change in EPS could negatively affect investor sentiment and stock prices, as it highlights challenges in profitability.

Additionally, projected revenue is set at $51.26 billion, which marks a 6.4% decrease compared to the same quarter last year. This downward trend in revenue mirrors industry challenges and could be off-putting for investors concerned about future growth.

For the full fiscal year, the consensus estimates put EPS at $7.61, suggesting a slight increase of 1.06% year-over-year, while revenue is expected to fall by 4.91% to $215.84 billion. These mixed signals may lead to uncertainty regarding the company's overall financial health.

The report also points out recent changes in analyst estimates, which are pivotal. The slight upward revision of 0.06% in the Zacks Consensus EPS estimate could indicate marginal optimism, yet the overall picture is still one of caution, culminating in a Zacks Rank of #3 (Hold).

In terms of valuation, Cardinal Health's Forward P/E ratio of 14.87 suggests a relatively lower valuation compared to the industry's average of 18.39. With a PEG ratio of 1.55 against an industry average of 1.91, this also indicates that the stock may offer some value; however, the declining revenue could overshadow this aspect.

In summary, the expectations of declining EPS and revenue create a landscape of caution among investors. Any significant negative surprises during the upcoming earnings report could adversely affect Cardinal Health's stock price.

Stocks: CAH