Cardinal Health, Inc. (NYSE:CAH) Q2 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 08:30 am ET


Cardinal Health, Inc. (NYSE:CAH) Q2 2019 Earnings Conference Call Transcript


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Good day, and welcome to the Cardinal Health, Inc. Second Quarter Fiscal Year 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Lisa Capodici. Please go ahead.

Lisa Capodici

Thank you, Bryce. Good morning, and welcome to Cardinal Health Second Quarter Fiscal 2019 Earnings Call. I am joined today by our CEO, Mike Kaufmann; and Chief Financial Officer, Jorge Gomez. During the call, we will provide details on our second quarter results, full-year outlook, and an update on our strategic initiatives.

You can find today's press release and presentation on the IR section of our website at During the call, we will be making forward-looking statements. The matters addressed in the statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to our SEC filings and the forward-looking statement slide at the beginning of our presentation for a description of these risks and uncertainties.

During the discussion today our comments will be on a non-GAAP basis, unless they are specifically called out as GAAP. Our GAAP to non-GAAP reconciliations for all relevant periods can be found in the schedules attached to our press release. In addition, during the call, we will provide an update to our fiscal '19 outlook on a non-GAAP basis.

We do not provide guidance on a GAAP basis due to the difficulty in predicting items that we exclude from our non-GAAP earnings per share and non-GAAP effective tax rate. During the Q&A portion of today's call, we ask that you limit your questions to one with one follow-up, so that we may give everyone in the queue a chance to ask a question. As always, the IR team will be available after this call, so feel free to reach out to us with any additional questions.

And with that, I will turn the call over to Mike.

Michael C. Kaufmann

Thanks, Lisa, and good morning, everyone. I'm glad you could join us. Let me begin with some comments on our second quarter of fiscal 2019, and then I'll provide a brief update on the progress we're making on our strategic initiatives to drive future growth. With the first half under our belt, I'm very pleased that we are on track with executing our plan. Overall, the second quarter came in ahead of our expectations, led by the Pharma segment.

EPS for the quarter was $1.29 and revenue of $37.7 billion was up 7%. Operating earnings were $637 million and operating cash flow was $372 million.

Based on the year-to-date performance, we are raising our guidance range for non-GAAP EPS for the full year to $4.97 to $5.17 from our previous range of $4.90 to $5.15. Jorge will walk you through the details and our current assumptions.

Our confidence in raising our guidance for fiscal '19 is based on the tangible results we are beginning to see from the hard work being performed across the enterprise, as we execute