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Cardinal Health's stock was up 0.4% prior to CNBC report about Amazon shelving drug selling plans
Cardinal Health's stock jumps 5.0% after CNBC report of Amazon shelving drug selling plans
Shares of Cardinal Health Inc. said Friday it received notice that TRC Capital Corp. has launched a "mini-tender" to buy up to two million Cardinal shares at $65.85 a share. The tender offer price, which represents about 0.6% of the shares outstanding, is 6.5% below Thursday's closing price, and 4.5% below the March 2 closing price, the last day before the tender offer was commenced. Cardinal recommended investors not to sell to TRC given the offer's discount to current prices, and shareholders who have already tendered their shares can withdraw them at any time before 12:01 a.m. ET on April 4. The stock, which was still inactive in premarket trade, has soared 19.6% over the past three months, while the SPDR Health Care Select Sector ETF has gained 2.7% and the S&P 500 has advanced 3.3%.
Cardinal Health recommends rejecting TRC's 'mini-tender' to buy 2 mln shares
Cardinal Health Inc. reported second-quarter profit and revenue beats early Thursday. Earnings for the latest quarter rose to $1.1 billion, or $3.33 per share, from $324 billion, or $1.02 per share in the year-earlier period. Adjusted earnings-per-share were $1.51, compared with the FactSet consensus of $1.15. Revenue rose to $35.2 billion from $33.1 billion, compared with the FactSet consensus of $34.6 billion. The U.S.'s corporate tax overhaul benefited Cardinal Health in the latest quarter by 20 cents per share, and should result in a federal tax rate of about 28% for the company in 2018. The company also recorded transitional tax benefits of $2.83 per share. Cardinal Health now expects 2018 adjusted EPS of $5.25 to $5.50, which reflects 40 cents per share of benefit from the corporate tax overhaul, and comes in above the FactSet consensus of $5.15 per share. Cardinal Health shares were not active in premarket trade. Shares have risen 6.8% over the last three months, compared with a 3.4% rise in the S&P 500 .
Cardinal Health expects 2018 adj. EPS of $5.25 to $5.50; FactSet consensus $5.15
Cardinal Health Q2 revenue $35.2 bln vs. $33.1 bln; FactSet consensus $34.6 bln
Cardinal Health Q2 EPS $3.33 vs. $1.02
Cardinal Health Q2 adj. EPS $1.51 vs. $1.34; FactSet consensus $1.15
Shares of companies across the health care industry, from health insurers to distributors, pharmacy-benefit managers and drugmakers, dropped in premarket trade on Tuesday after Amazon , Berkshire Hathaway and JPMorgan Chase announced plans for a new company to improve their employees' health care. The news hit pharmacy-benefit managers, pharmacy chains and drug distributors among the hardest, with CVS Health Corp. shares dropping 7.6%, Walgreens Boots Alliance shares dropping 5.7%, Express Scripts Holding Company dropping 4.8% and Cardinal Health Inc. shares dropping 4.3%. Several health insurers' shares also fell significantly, including UnitedHealth Group , which dropped 7.2%, Anthem Inc. , which dropped 7%, as well as Aetna Inc. and Humana Inc. . The moves reflect investor concerns that the Amazon, Berkshire Hathaway and JPMorgan initiative could shake up the status quo, especially given the three companies' large size and influential nature, and the potential interest of other employers in joining them. U.S. health care costs continue to rise year over year despite efforts to curb them, and many experts believe the fault lies with too-high prices. The SPDR S&P Biotech ETF declined 1% in premarket trade, as did the Health Care Select Sector SPDR . Shares of the ETFs have surged 15.5% and 12.3% respectively over the last three months, compared with a 10.9% increase in the S&P 500 and a 13.2% rise in the Dow Jones Industrial Average .
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Cardinal Health, Inc. is a healthcare services company providing pharmaceutical and medical products. It operates through the Pharmaceutical and Medical segments. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products in the United States, and operates nuclear pharmacies and cyclotron facilities, provides pharmacy management services to hospitals as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, provides services to healthcare companies supporting the development, marketing, and distribution of specialty pharmaceutical products, and repackages generic pharmaceuticals and over-the-counter healthcare products. The Medical segment distributes a broad range of medical, surgical and laboratory products and provides services to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States, Canada and China; as well as manufactures, sources and develops own Cardinal Health brand medical and surgical products, which are sold in the United States, Canada, Europe and other regions internationally, and provides post-acute care management and transition services and software to hospitals, other healthcare providers and payers. The company was founded by Robert D. Walter in 1971 and is headquartered in Dublin, OH. (See Full Profile)
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