DUBLIN, Ohio (AP) — Cardinal Health Inc.'s fiscal second-quarter earnings slipped 8.3 percent due partially to the end of a big contract, but the prescription drug distributor's results beat expectations, and it raised its forecast for the rest of the year.
The Dublin, Ohio, company's stock jumped Thursday in morning trading.
Cardinal said its revenue for the quarter that ended Dec. 31 fell 12 percent, as the expiration of a contract with the nation's largest drugstore chain, Walgreen Co., hurt pharmaceutical segment sales. Walgreen said last March that it was replacing Cardinal in favor of an expanded supply deal with AmerisourceBergen Corp.
Overall, Cardinal earned $278 million, or 80 cents per share, in the quarter. That compares to $303 million, or 88 cents per share, in the previous year's quarter. Adjusted earnings totaled 90 cents per share.
Revenue dropped to $22.24 billion from $25.23 billion.
Analysts expected, on average, earnings of 83 cents per share on $20.76 billion in revenue, according to FactSet.
Cardinal now expects adjusted, fiscal 2014 earnings to range from $3.75 to $3.85 per share, after saying in October that it expected $3.62 to $3.72 per share.
Analysts forecast $3.70 per share.
Shares climbed $2.35, or 3.5 percent, to $68.80 after the opening bell.