Cardinal Health is getting pummeled on mixed results — here's our plan for stock

Shares of Cardinal Health are taking a hit on Thursday after the drug distributor reported mixed quarterly results. We're not buyers of the dip just yet. Revenue for the three months ending March 31 increased 11% year over year to $60.94 billion, missing expectations of $61.7 billion, according to LSEG. Adjusted earnings per share (EPS) came in at $3.17, ahead of the $2.79 consensus estimate compiled by LSEG. CAH 1Y mountain Cardinal Health 1-year return Bottom line Good, not great, is how Jim Cramer described Cardinal Health's performance during Thursday's Morning Meeting . While sales missed the mark across all three operating segments, overall profitability was strong — except for the Global Medical Products and Distribution segment, where Cardinal's tariff exposure lies — and free cash flow was three times the Street's consensus estimate. On the call with investors, CFO Aaron Alt said fluctuations in the sales mix between GLP-1s, IRA changes, and generics weighed on Pharmaceutical and Specialty Solutions segment revenues, while Global Medical Products and Distribution sales were held back by lower distribution volumes. In addition, the team raised its outlook for full-year earnings. However, only 13 cents of the 50-cent increase at the midpoint is attributable to improved operational performance, with the remainder attributable to taxes, share repurchases, and interest/other expenses. Still better than Street expectations, just not by as much. …