DUBLIN, Ohio (AP) — Cardinal Health's third-quarter net income fell about 9 percent as the termination of a big contract last year again clipped the prescription drug distributor's bottom line.
The Dublin, Ohio, company said Thursday that revenue from its pharmaceutical segment sank 15 percent in the quarter to $18.8 billion, and that segment's earnings fell as well due to the expiration of a contract with Walgreen Co., the nation's largest drugstore chain. In 2013, Walgreen said that it was replacing Cardinal in favor of an expanded supply deal with AmerisourceBergen Corp., a company in which it also took an ownership stake.
The end of that contract has played out in Cardinal's profit numbers over the past few quarters.
Cardinal also distributes medical supplies, and revenue from that segment climbed 7 percent to $2.7 billion.
Overall, the company earned $315 million, or 91 cents per share, in the quarter. That compares to earnings of $346 million, or $1 per share, last year.
Earnings, adjusted for amortization and acquisition-related costs, were $1.01, which was in line with expectations.
Cardinal's revenue fell 13 percent to $21.43 billion, just shy of the $21.82 billion projected by industry analysts, according to FactSet.
Cardinal reaffirmed its forecast for 2014 adjusted earnings to range between $3.75 and $3.85 per share.
Analysts expect $3.84 per share.
Company shares slipped 91 cents to $68.60 before markets opened.