Cardinal Health Announces Stock Buyback Authorization and Growth Strategies
Cardinal Health, a healthcare services company, hosted its Investor Day event, unveiling exciting updates on its growth strategies and long-term financial outlook. The company's CEO, Jason Hollar, expressed enthusiasm about the progress made and highlighted the initiatives aimed at maximizing Cardinal Health's potential and advancing healthcare.
Cardinal Health revealed a narrowed fiscal year 2023 non-GAAP diluted EPS guidance, projecting a growth of 13% at the mid-point. The updated guidance range was set at $5.65 to $5.80, compared to the previous range of $5.60 to $5.80. Furthermore, the company provided a preliminary fiscal year 2024 non-GAAP diluted EPS guidance, expecting a 15% growth at the mid-points, with a range of $6.45 to $6.70. These positive forecasts underscore Cardinal Health's commitment to sustainable growth.
In line with its focus on long-term growth, Cardinal Health unveiled its financial targets, highlighting a projected 12% to 14% growth of non-GAAP diluted EPS over a three-year period. The company also revised its long-term financial target for Pharmaceutical segment profit, raising it from "low-single digit to mid-single digit" growth to a range of 4% to 6% growth. These targets demonstrate Cardinal Health's dedication to delivering robust financial performance.
Cardinal Health provided an update on its Medical Improvement Plan, announcing a revised timeline to achieve over $650 million in segment profit by fiscal year 2023. This plan signifies the company's commitment to enhancing operational efficiency and driving profitability within its medical segment.
Additionally, the Board of Directors also approved a new $3.5 billion share repurchase authorization, effective until December 31, 2027. This authorization allows Cardinal Health to repurchase its own shares, demonstrating confidence in the company's value and commitment to maximizing shareholder returns. Over the next three years, Cardinal Health plans to execute at least $2.0 billion of share repurchases, which will contribute to increased shareholder value.
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