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Cardinal Health fiscal 2Q profit falls 8.3 percent

January 30, 2014

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.

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Source: Associated Press

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