Cardinal Health (NYSE: CAH) shares surged more than 6% Friday on the back of its latest earnings release, which saw it beat top and bottom-line consensus expectations.

The company reported Q1 EPS of $1.73, $0.32 better than the analyst estimate of $1.41, while revenue for the quarter came in at $54.8 billion, up 10% YoY and higher than the consensus estimate of $54.76 billion.

On a GAAP basis, the company posted a Q1 operating loss of $14 million due to a non-cash, pre-tax goodwill impairment of $581 million related to the Medical segment. Non-GAAP operating earnings increased 35% to $571 million in the quarter, driven by significant increases in both Pharmaceutical segment profit and Medical segment profit.

"With strong first quarter results and an improved outlook for the year, we are continuing our operating momentum into fiscal 2024," said Jason Hollar, CEO of Cardinal Health. "In Q1, we delivered significant profit growth in both the Pharmaceutical and Medical segments, which along with our favorable capital structure and opportunistic capital deployment, gives us confidence to raise fiscal 2024 non-GAAP EPS guidance."

Looking ahead, Cardinal Health sees FY2024 earnings between $6.75 and $7 per share, above the prior range of $6.50 to $67.50 per share and the consensus of $6.72.

By Sam Boughedda