On January 10, 2022 Cardinal Health (NYSE: CAH) reported that provided a fiscal year 2022 financial update for the Medical segment (Press release, Cardinal Health, JAN 10, 2022, View Source [SID1234598501]). The company now expects additional inflationary impacts and lower volumes resulting primarily from global supply chain constraints, and a lower-than-expected offset from pricing actions . The company estimates this incremental impact will be approximately $150 million to $175 million to fiscal year 2022 Medical segment profit and approximately $0.40 to $0.45 per share to non-GAAP diluted EPS. Excluding this impact to the Medical segment and non-GAAP diluted EPS, the company’s other financial expectations1 for fiscal year 2022 remain unchanged.
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Cardinal Health continues to take actions to drive performance in the Medical segment, including: simplifying its operating model, evolving its commercial contracting strategies and driving mix, and making investments in its growth businesses. Additionally, the company reaffirms its previously announced long-term financial targets, expense reduction initiatives, and capital deployment priorities.
Cardinal Health will present at the 40th Annual J.P. Morgan Healthcare Conference today, January 10, 2022 at 10:30 a.m. Eastern. The presentation will be followed by a Q&A session with Mike Kaufmann, chief executive officer, and Jason Hollar, chief financial officer, and will include comments related to this update.
To listen to a live webcast of this event, please visit the Investor Relations page at ir.cardinalhealth.com.
The company is currently analyzing how this financial update to the Medical segment may impact other components of its second quarter GAAP financial statements, including goodwill. The financial update is based on preliminary results and remains subject to completion of the company’s standard quarter-end closing procedures.
The company plans to release its second-quarter fiscal year 2022 financial results on February 3 prior to the opening of trading on the New York Stock Exchange. The company will webcast a discussion of these results beginning at 8:30 a.m. Eastern.
The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.