U.S. drug distributor Cardinal Health reported a lower-than-expected quarterly profit on Thursday along with also cut its annual earnings forecast as its medical device unit Cordis was hit by supply chain issues along with also higher costs.
Cardinal’s shares plunged 18 percent on Thursday.
Chief Executive Mike Kaufmann said the company can be moving aggressively to address operational along with also supply chain issues at Cordis.
Cordis, which makes devices such as catheters along with also stents, was bought by Johnson & Johnson in 2015, along with also has been underperforming over the past few quarters.
The company’s medical segment, which houses the Cordis unit, brought in sales of $3.9 billion inside third quarter ended March 31, below analysts’ estimates of $4.1 billion, according to Evercore ISI.
However, sales by the company’s pharmaceuticals division, its largest by revenue, climbed 5 percent to $29.7 billion, surpassing Evercore estimates.
Rival AmerisourceBergen on Wednesday posted better-than-expected quarterly profit, sending its shares along with also those of its peers higher.
Excluding items, Cardinal earned $1.39 per share. Analysts were expecting $1.51 per share, according to Thomson Reuters I/B/E/S.
The company cut its fiscal 2018 adjusted earnings forecast to $4.85-$4.95 per share by $5.25-$5.50 per share, reflecting a negative tax rate along with also Cordis’s performance.
Net earnings attributable to the company fell 33 percent to $255 million, or $0.81 per share, inside quarter.
Revenue rose 5.7 percent to $33.63 billion.