Driven by gains in its at-Home Solutions segment and other factors, Cardinal Health (NYSE: CAH) announced strong results for its second quarter of fiscal 2025, with executives discussing those results during a Jan. 30 earnings call.
“We remain bullish about our position in the health-care industry and confident in our strategic direction for the future,” CEO Jason Hollar said.
The at-Home Solutions segment saw double-digit revenue growth, and Hollar said the company expects this trend to continue in the coming year due to increasing demand for in-home supplies and chronic care products.
Although Cardinal Health did not provide exact information on the home health-care sector, total company revenue was $55.3 billion for the second quarter of fiscal 2025.
Cardinal Health raised its fiscal 2025 EPS guidance based on these results.
“We are raising our EPS guidance to a range of $7.85 to $8,” CFO Aaron Alt said. “In summary, we had a lot going on, and we are pleased to report that the profit growth across the business resulted in a much better than expected EPS of $1.93.”
In addition to broad growth in the at-home sector, the company is completing a new distribution center in Texas.
“We have begun construction on our new distribution center in Fort Worth, Texas, to continue benefiting from the growth of home health care,” Hollar said. “The facility will be equipped with leading robotics and automation technologies and should be fully operational by this summer.”
The new distribution center is expected to bolster the speed and volume capacity for critical home-use items, including supplies for diabetes care and enteral feeding, Hollar said.
“CMS continues to make policy decisions supporting continuous glucose monitor (CGM) access, and we are well positioned to take advantage of future market growth as CGM utilization continues to increase,” Hollar said. “We continue to deliver action-driven insights to support our customers, many of the leading health systems in the United States, enabling them to better manage their shipping needs.”
Cardinal also expects to see benefits from integrating Advanced Diabetes Supply Group (ADSG) once that acquisition closes, Hollar said.
The company announced the deal in November last year.
“Bringing together the scale and efficiency of our at-home business with the patient acquisition and retention capabilities of ADSG will be highly complementary, create further diversification within our diabetes business, and allow us to drive significant value for customers and patients,” he said.
Because Cardinal does not yet know when its acquisition of ADSG will close, the company did not factor ADSG into its current guidance.
“Given the partial remaining year, the increased interest expense to fund the transactions, and the timing of our investments and synergy achievement plans, we will provide more details beyond this fiscal year when providing fiscal year ‘26 guidance on future calls,” he said.
Cardinal Health at-Home will be in booth 1020 at Medtrade, Feb. 19-20, in Dallas.
