Cardinal Health shares are trading lower after the company updated its FY24 adjusted EPS guidance and reiterated its long-financial targets. The company expects a new $250 million share repurchase program in Q2.
Portfolio Pulse from Benzinga Newsdesk
Cardinal Health's stock is trading lower following the company's update on its FY24 adjusted EPS guidance and the reiteration of its long-term financial targets. Additionally, Cardinal Health announced a new $250 million share repurchase program set to begin in Q2.
January 09, 2024 | 3:36 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Cardinal Health's stock price is experiencing downward pressure after the company provided an update on its FY24 adjusted EPS guidance without raising it, which may have disappointed investors. The reiteration of long-term financial targets suggests no significant changes to the company's outlook. The new $250 million share repurchase program could be seen as a positive move to return value to shareholders.
The downward trading movement of Cardinal Health's stock is likely due to the market's reaction to the updated FY24 EPS guidance, which may have been below investor expectations. The reiteration of long-term financial targets without an upward revision can also contribute to a lack of investor enthusiasm. However, the announcement of a share repurchase program is generally seen as a positive action, as it can indicate the company's confidence in its own stock and can lead to earnings per share accretion. The net impact is negative in the short term due to the guidance update, but the buyback program may provide some offsetting support.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100