On April 28, 2016 Cardinal Health today reported third-quarter results for fiscal year 2016, including a 21 percent increase in revenue to $30.7 billion and a 20 percent increase in non-GAAP operating earnings to $788 million (Filing, 8-K, Cardinal Health, APR 28, 2016, View Source [SID:1234511565]). Non-GAAP diluted earnings per share (EPS) increased 20 percent to $1.43. On a GAAP basis, operating earnings increased 11 percent to $656 million, and diluted EPS increased 7 percent to $1.17.

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"We had a strong financial and operational performance in our fiscal third quarter. At the same time, we continued to enhance and grow enterprise-wide service and product lines, which are important to our customers and address some of health care’s most difficult challenges," said George Barrett, chairman and chief executive officer of Cardinal Health. "We delivered double-digit growth in revenue and profit in both our Pharmaceutical and Medical reporting segments and had very solid performance across our lines of business."

The company tightened the range for its fiscal 2016 non-GAAP diluted earnings per share guidance to $5.17 to $5.27 from the prior range of $5.15 to $5.35.
Q3 FY16 SUMMARY

Q3 FY16

Q3 FY15

Y/Y
Revenue
$
30.7
billion

$
25.4
billion

21%
Operating earnings
$
656
million

$
591
million

11%
Non-GAAP operating earnings
$
788
million

$
657
million

20%
Net earnings attributable to Cardinal Health, Inc.
$
386
million

$
365
million

6%
Non-GAAP net earnings attributable to Cardinal Health, Inc.
$
472
million

$
396
million

19%
Diluted EPS attributable to Cardinal Health, Inc.
$
1.17

$
1.09

7%
Non-GAAP diluted EPS attributable to Cardinal Health, Inc.
$
1.43

$
1.19

20%
SEGMENT RESULTS
Pharmaceutical Segment
Third-quarter revenue for the Pharmaceutical segment increased 22 percent to $27.5 billion due to growth from new and existing customers as well as acquisitions.
Strong performance from both acquisitions and new and existing customers significantly contributed to segment profit growth of 16 percent to $660 million.

Q3 FY16

Q3 FY15

Y/Y
Revenue
$
27.5
billion

$
22.6
billion

22%
Segment profit
$
660
million

$
567
million

16%
Medical Segment
Third-quarter revenue for the Medical segment increased 13 percent to $3.1 billion due to the net contribution from acquisitions as well as solid growth from existing businesses.
Segment profit increased 26 percent to $128 million due to the contribution from acquisitions, net of divestitures, and from Cardinal Health-branded products. Segment profit includes the $21 million negative impact of the Cordis-related inventory fair value step-up.

Q3 FY16

Q3 FY15

Y/Y
Revenue
$
3.1
billion

$
2.8
billion

13%
Segment profit
$
128
million

$
102
million

26%

ADDITIONAL THIRD-QUARTER AND RECENT HIGHLIGHTS
• Announced agreement to acquire Curaspan Health Group Inc., a leader in discharge planning and care transitions technology for hospitals, health systems and post-acute providers

• Recognized as one of the Top Companies for Female Executives by the National Association for Female Executives

• Launched Cardinal Health MedSync Advantage, a custom-built medication synchronization program to help community pharmacists improve medication adherence and patient outcomes and increase pharmacy efficiency

• Announced winners of the sixth annual Generation Rx awards, recognizing student pharmacists from across the country and a clinical professor of pharmacy for their ongoing efforts to help prevent prescription medication misuse