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Omar Venerio
Omar Venerio
Articles (1681) 

2 Stocks to Watch Monday

Shares of Cardinal Health rise, while Continental Resources falls

May 11, 2020 | About:

Shares of Cardinal Health Inc. (NYSE:CAH) jumped almost 7% on Monday after reporting third-quarter revenue of $39.16 billion and earnings of $1.62 per share. It beat analysts' earnings estimates by 17 cents and revenue expectations by $2.12 billion.

"We remain committed to delivering products and solutions to front-line health care providers so they can safely serve and treat patients around the world. As we look toward and beyond the fourth quarter, we will continue to take strategic actions to fulfill this mission," CEO Mike Kaufmann said.

Sales in the pharmaceutical segment rose 12% to $35.1 billion, driven by growth from Pharmaceutical Distribution customers and Specialty Solutions customers. There was an increase in overall sales in March due to the Covid-19 pandemic. The segment profit was flat at $534 million, reflecting strong performance.

In the medical segment, revenue rose 5% to $4.1 billion due to growth in products and distribution and Cardinal Health at Home.The profit increased 15% to $178 million due to an increase in products and distribution, as well as cost savings actions.

Looking ahead to fiscal year 2020, the company expects non-GAAP diluted earnings per share in the range of $5.20 to $5.40.

Paul Tudor Jones (Trades, Portfolio) and Richard Pzena (Trades, Portfolio) initiated new positions with 4,000,397 and 9,518 shares, respectively. Joel Greenblatt (Trades, Portfolio) cut his holding by 68% to 107,580 shares and Charles Brandes (Trades, Portfolio) reduced his stake by 6% to 1,760,297 shares. Ray Dalio (Trades, Portfolio) sold out.

Shares of Continental Resources Inc. (NYSE:CLR) fell more than 7% on Monday after the company posted first-quarter results. Revenue declined 21.4% from the prior-year quarter to $880.8 million, beating projections by $37.23 million. The company posted a loss of 8 cents per share, falling 4 cents short of estimates.

"This has been an unprecedented global market environment, which has seen crude oil demand fall by approximately 30% due to the Covid-19 pandemic," CEO Bill Berry said. "Continental is committed to preserving value over volumes. Our assets are secure and we are confident that this deferred production will bring more value to our shareholders in the months to come." 

During the quarter, total production rose 9% to an average 360,841 barrels of oil equivalent per day. Oil production increased 3%, averaging 200,671 barrels of oil equivalent per day. Production of natural gas grew 16%, averaging 961.0 million cubic feet per day.

During the quarter ended Dec. 31, Greenblatt opened a new position of 6,335 shares. Steven Cohen (Trades, Portfolio) boosted his stake by 4% to 1,426,975 shares. Dalio reduced his holding 78% to 19,381 shares and Jim Simons (Trades, Portfolio) trimmed his position by 28% to 498,300 shares.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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