Stock Alert: Cardinal Health Shares Up 7% In Premarket On Upbeat Q3

(RTTNews) - Shares of Cardinal Health Inc. (CAH) are rising over 7% in pre-market today, after the healthcare company reported better-than-expected Q3 results and reaffirmed its fiscal 2020 guidance.

The stock has been trading in the range of $39.05 - $60.69 for the past one year, and closed Friday's trade at $49.88, up $1.36 or 2.80%. CAH is currently trading at $53.67, up $3.79 or 7.60% in the pre-market trading session.

The company's Q3 net income was $350 million or $1.19 per share compared to $296 million or $0.99 per share in the prior year period.

Adjusted earnings per share for the quarter were $1.62, compared to $1.59 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.43 per share. Analysts' estimates typically exclude certain special items.

Revenues for the quarter were $39.2 billion, an increase of 11% from last year. Analysts expected revenues of $36.95 billion for the quarter.

Looking ahead to fiscal 2020, the company continues to project adjusted earnings in a range of $5.20 - $5.40 per share. The Street is currently looking for earnings of $5.19 per share for 2020.

While both segments experienced a modest net positive impact in the third quarter from increased volume related to the COVID-19 pandemic, the company said it expects a significant net negative impact to fourth quarter financial results in both segments. This is driven most meaningfully by a decrease in volume related to the cancellation or deferral of elective medical procedures.