Shares of Cardinal Health Inc. rose 1.7% in premarket trading on Tuesday, following the drug distributor's announcement that it anticipates its fiscal 2024 earnings to be at the high end of its previous guidance. This positive news has set the stock on track to open at its highest price since its record closing of $108.05 on December 13.
While Cardinal Health's review of its businesses continues to be "active and ongoing," the company has already made the decision to further develop its growth businesses in three key areas: the Medical Segment, at-Home Solutions, and OptiFreight Logistics.
Previously, Cardinal Health had guided for adjusted earnings per share of $6.75 to $7.00 for fiscal 2024. However, according to FactSet, the current estimated earnings per share stands at $6.96.
Over the past three months, Cardinal Health's stock has surged by an impressive 15.9%. In comparison, the Health Care Select Sector SPDR ETF has increased by 7.6% and the S&P 500 has advanced by 9.9%.
Cardinal Health's strong performance and strategic focus on growth businesses indicate a promising outlook for the company's future profitability.