Cardinal Health Inc (NYSE:CAH) shares are trading lower after the company warned of additional inflationary effects and lower volumes from global supply chain constraints with lower-than-anticipated offset from pricing actions.
- As a result, the incremental impact will be nearly $150 million – $175 million on FY22 medical segment profit and $0.40 – $0.45 per share on non-GAAP EPS.
- Excluding this impact on the medical segment and non-GAAP EPS, Cardinal Health expects its other financial metrics for fiscal 2022 would remain unchanged.
- Related: Cardinal Health Post Mixed Q1 Earnings; Reaffirms FY22 Adjusted EPS Outlook.
- The Dublin, Ohio-based healthcare distributor also highlighted several measures to lift the performance of its medical segment, including “simplifying its operating model, evolving its commercial contracting strategies and driving mix, and making investments in its growth businesses.”
- The company plans to release its Q2 FY22 financial results on February 3.
- Price Action: CAH shares are down 10.3% at $48.67 on the last check Monday.
