Cardinal Health Says Despite Nonrenewal Of OptumRx Contracts, It Reiterates Its Pharmaceutical And Specialty Solutions Long-term Segment Profit CAGR Target Of 4%-6% And Its Consolidated Adjusted EPS CAGR Target Of 12%-14% For FY2024-FY2026
Portfolio Pulse from Benzinga Newsdesk
Cardinal Health announced that despite the nonrenewal of its OptumRx contracts, it maintains its long-term profit growth targets for its Pharmaceutical and Specialty Solutions segment and its consolidated adjusted EPS. The company reiterates its segment profit CAGR target of 4%-6% and its consolidated adjusted EPS CAGR target of 12%-14% for the fiscal years 2024-2026.
April 22, 2024 | 10:51 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Cardinal Health remains confident in its financial growth targets despite the nonrenewal of OptumRx contracts, aiming for a 4%-6% profit CAGR in its Pharmaceutical and Specialty Solutions segment and a 12%-14% adjusted EPS CAGR for FY2024-FY2026.
The announcement by Cardinal Health indicates a strong confidence in its business model and growth strategy, despite the setback from losing OptumRx contracts. The reiteration of its long-term financial targets suggests that the company has a solid plan to achieve these goals, which might mitigate investor concerns over the contract loss. However, the actual impact on the stock price in the short term could be neutral as investors digest the news and weigh the company's ability to meet these targets against the backdrop of the lost contracts.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100