Latest news with #JasonHollar
Yahoo
18 hours ago
- Business
- Yahoo
Cardinal Health's $1.9 Billion Urology Bet Sends Shares Sliding -- But Could Spark Long-Term Growth
Cardinal Health (NYSE:CAH) is making another big move in specialty healthcare, agreeing to acquire Solaris Health for $1.9 billion. The deal builds on the company's growing footprint in urology, a space CEO Jason Hollar describes as an attractive specialty for the business. This acquisition follows other recent plays in the sector, including the purchase of Academic Urology & Urogynecology. Solaris Health brings a network of more than 750 providers across 14 states, positioning Cardinal to further strengthen its multispecialty strategy. Warning! GuruFocus has detected 3 Warning Signs with CAH. Management paired the announcement with an upgrade to its fiscal 2026 adjusted earnings per share forecast, now expected at $9.30 to $9.50 above analyst expectations. The Dublin, Ohio-based healthcare giant, known for its pharmaceutical distribution, medical product manufacturing, and home-health services, also delivered fiscal fourth-quarter results that topped EPS estimates, with revenue roughly in line with consensus. The market's reaction was less enthusiastic in the short term, with shares down nearly 10% on the news and since then has bounced back a bit. Currently, stock remains up over 25%. For investors, the short-term pullback could reflect caution over integration risks and near-term costs, while the long-term view hinges on whether Cardinal can unlock the growth potential it sees in urology and multispecialty care. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
3 days ago
- Business
- Bloomberg
Cardinal Health to Acquire Solaris Health in $1.9 Billion Deal
Cardinal Health announced an agreement to purchase Solaris Health in a $1.9 billion deal, the company's latest acquisition in the urology category and an expansion of its multispecialty strategy. 'Urology is an attractive specialty for us,' said Jason Hollar, chief executive officer of Cardinal Health, in a statement. Among other recent urology acquisitions, Cardinal Health recently completed the purchase of Academic Urology & Urogynecology.
Yahoo
20-07-2025
- Business
- Yahoo
After earnings fell by $300 million, Cardinal Health's CEO went ‘ruthless' to turn it around—and he says workers backed him because ‘people want to win'
Cardinal Health's CEO says 'ruthless prioritization' was needed to turn around the Fortune 500 company whose earnings plummeted $300 million just three years ago. The Gen X chief executive, Jason Hollar, slashed business segments, slimmed down the company and didn't shy away from ruffling feathers with his new reports. But instead of revolting, he reveals they actually embraced the changes: 'People want to win.' Cardinal Health is one of the largest healthcare giants in America, supplying medical products and data solutions for over 90% of U.S. hospitals. But just a few years ago, its operating earnings plummeted $300 million as some segments struggled. When Jason Hollar took over as CEO of the Fortune 500 company in late 2022, the business turnaround required some serious tough love. 'This concept of relentless simplification and ruthless prioritization was the cornerstone of the change management and the strategy,' Hollar tells Fortune. 'And I use the word ruthless for a very particular reason, to put a little bit of an edge to it, because I didn't want people just to reprioritize everything they're doing. I wanted them to stop doing certain things.' Before Hollar took the reins, certain segments were costing the $38 billion health care company hundreds of millions of dollars each year. Cardinal Health's non-GAAP operating earnings fell 12% from $2.3 billion in 2021 to $2 billion in 2022, while non-GAAP net earnings plummeted 13% from $1.6 billion to $1.4 billion in the same time frame. So on his first day as chief executive, Hollar laid out a cutthroat game plan to bring Cardinal Health back to its former glory, including slashing business segments and slimming down the company. And so far, it's worked—the business' operating earnings for Q3 of the 2025 fiscal year hit $730 million. Usually ruffling feathers is a major concern of incoming chiefs. But perhaps surprisingly, Hollar says that Cardinal Health's staff weren't just on board—they were itching for an overhaul. '[Cardinal Health] is a great place to work. But [employees] were getting frustrated as well that we weren't succeeding,' Hollar says. 'It's great to be with a great group of people, but people want to win, and we weren't winning as much as we could have.' Hollar's first days in office: slashing segments and halting M&A It's no easy feat to turn around a heritage company like Cardinal Health that's been operating for nearly 55 years. But Hollar's 'ruthless' approach was the juice the healthcare business needed to get back on track. The 52-year-old executive first joined the Fortune 500 business as CFO in the thick of COVID, when the business was reeling from uncertainty around those pandemic-era changes and product liabilities like opioids. The company had a large balance sheet restructuring, and some recent acquisitions from prior leadership were driving operational challenges. Two years later as CEO, he had the extensive knowledge base to turn things around quickly—so he exited product lines, pulled Cardinal Health out of a 'significant number' of countries, and sold off its non-healthcare portfolio. 'There were a lot of changes done in a pretty short period of time,' Hollar explains. 'I saw that some poor decisions on capital deployment was a primary driver of some of those operating challenges. So I believed if we did fewer things, [if] we simplified the operations in the organization, and then took those resources and reprioritized it to the faster-growing parts of the industry in the business, that we could be a lot more successful.' Cardinal Health's Medical segment, which manufactures surgical and laboratory products, also needed a complete revamp—it had lost $16 million in just one quarter, prior to Hollar stepping in. The CEO also increased its capital expenditures and selling, general, and administrative expenses (S&GA) in speciality growth initiatives. Simultaneously, Hollar streamlined Cardinal Health's focus. During his first 18 months, he didn't pursue any significant M&A, and instead put all his energy into existing products and clients. The business later acquired Specialty Networks in 2024 for $1.2 billion. 'It was an absolute pivot from where we were. We were trying to grow in so many different ways. We were not doing any of them really well,' Hollar says. 'Our service levels improved dramatically, our productivity, our efficiency, and even things like safety and quality are at much better levels. My philosophy is that you can't just do some of the processes better some of the time—all [are] deep-rooted success across the board…or you don't do any of them well.' Not changing the culture, but finally putting in the elbow grease so all workers 'win' It wasn't just the more technical side of Cardinal Health that needed a facelift—Hollar says employees were happy to work there, but were a bit dejected by recent losses. To build up morale and finally get workers on the 'winning' side of things, Hollar delivered an honest truth. 'I told the team, 'There's one value we don't show up with every single day, and that's accountability. That's the one we have to work on,'' Hollar says. 'We're not going to change the values, we're not going to change our mission and vision. What we need to do is we actually just need to live up to them.' Hollar says he knew exactly what leadership shake-up would help him achieve his mission. He separated three of his eight direct reports, eliminating two of the roles entirely. By restructuring the business, he was able to add another three direct reports. Hollar was changing up his personnel, and moving fast—which he says proved to employees that his dedication was stronger than just platitudes. '[I] demonstrated to the team that these are a lot more than happy words, these are our actual actions, that we're going to put resources behind the strategy that I laid out,' Hollar says. 'Ultimately that led to $5 billion of M&A that we've done over just the last 18 months.' This story was originally featured on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
20-07-2025
- Business
- Yahoo
After earnings fell by $300 million, Cardinal Health's CEO went ‘ruthless' to turn it around—and he says workers backed him because ‘people want to win'
Cardinal Health's CEO says 'ruthless prioritization' was needed to turn around the Fortune 500 company whose earnings plummeted $300 million just three years ago. The Gen X chief executive, Jason Hollar, slashed business segments, slimmed down the company and didn't shy away from ruffling feathers with his new reports. But instead of revolting, he reveals they actually embraced the changes: 'People want to win.' Cardinal Health is one of the largest healthcare giants in America, supplying medical products and data solutions for over 90% of U.S. hospitals. But just a few years ago, its operating earnings plummeted $300 million as some segments struggled. When Jason Hollar took over as CEO of the Fortune 500 company in late 2022, the business turnaround required some serious tough love. 'This concept of relentless simplification and ruthless prioritization was the cornerstone of the change management and the strategy,' Hollar tells Fortune. 'And I use the word ruthless for a very particular reason, to put a little bit of an edge to it, because I didn't want people just to reprioritize everything they're doing. I wanted them to stop doing certain things.' Before Hollar took the reins, certain segments were costing the $38 billion health care company hundreds of millions of dollars each year. Cardinal Health's non-GAAP operating earnings fell 12% from $2.3 billion in 2021 to $2 billion in 2022, while non-GAAP net earnings plummeted 13% from $1.6 billion to $1.4 billion in the same time frame. So on his first day as chief executive, Hollar laid out a cutthroat game plan to bring Cardinal Health back to its former glory, including slashing business segments and slimming down the company. And so far, it's worked—the business' operating earnings for Q3 of the 2025 fiscal year hit $730 million. Usually ruffling feathers is a major concern of incoming chiefs. But perhaps surprisingly, Hollar says that Cardinal Health's staff weren't just on board—they were itching for an overhaul. '[Cardinal Health] is a great place to work. But [employees] were getting frustrated as well that we weren't succeeding,' Hollar says. 'It's great to be with a great group of people, but people want to win, and we weren't winning as much as we could have.' Hollar's first days in office: slashing segments and halting M&A It's no easy feat to turn around a heritage company like Cardinal Health that's been operating for nearly 55 years. But Hollar's 'ruthless' approach was the juice the healthcare business needed to get back on track. The 52-year-old executive first joined the Fortune 500 business as CFO in the thick of COVID, when the business was reeling from uncertainty around those pandemic-era changes and product liabilities like opioids. The company had a large balance sheet restructuring, and some recent acquisitions from prior leadership were driving operational challenges. Two years later as CEO, he had the extensive knowledge base to turn things around quickly—so he exited product lines, pulled Cardinal Health out of a 'significant number' of countries, and sold off its non-healthcare portfolio. 'There were a lot of changes done in a pretty short period of time,' Hollar explains. 'I saw that some poor decisions on capital deployment was a primary driver of some of those operating challenges. So I believed if we did fewer things, [if] we simplified the operations in the organization, and then took those resources and reprioritized it to the faster-growing parts of the industry in the business, that we could be a lot more successful.' Cardinal Health's Medical segment, which manufactures surgical and laboratory products, also needed a complete revamp—it had lost $16 million in just one quarter, prior to Hollar stepping in. The CEO also increased its capital expenditures and selling, general, and administrative expenses (S&GA) in speciality growth initiatives. Simultaneously, Hollar streamlined Cardinal Health's focus. During his first 18 months, he didn't pursue any significant M&A, and instead put all his energy into existing products and clients. The business later acquired Specialty Networks in 2024 for $1.2 billion. 'It was an absolute pivot from where we were. We were trying to grow in so many different ways. We were not doing any of them really well,' Hollar says. 'Our service levels improved dramatically, our productivity, our efficiency, and even things like safety and quality are at much better levels. My philosophy is that you can't just do some of the processes better some of the time—all [are] deep-rooted success across the board…or you don't do any of them well.' Not changing the culture, but finally putting in the elbow grease so all workers 'win' It wasn't just the more technical side of Cardinal Health that needed a facelift—Hollar says employees were happy to work there, but were a bit dejected by recent losses. To build up morale and finally get workers on the 'winning' side of things, Hollar delivered an honest truth. 'I told the team, 'There's one value we don't show up with every single day, and that's accountability. That's the one we have to work on,'' Hollar says. 'We're not going to change the values, we're not going to change our mission and vision. What we need to do is we actually just need to live up to them.' Hollar says he knew exactly what leadership shake-up would help him achieve his mission. He separated three of his eight direct reports, eliminating two of the roles entirely. By restructuring the business, he was able to add another three direct reports. Hollar was changing up his personnel, and moving fast—which he says proved to employees that his dedication was stronger than just platitudes. '[I] demonstrated to the team that these are a lot more than happy words, these are our actual actions, that we're going to put resources behind the strategy that I laid out,' Hollar says. 'Ultimately that led to $5 billion of M&A that we've done over just the last 18 months.' This story was originally featured on Sign in to access your portfolio
Yahoo
26-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Cardinal Health's Q1 Earnings Call
Cardinal Health's first quarter results were received positively by the market, with management attributing performance to strong execution in its Pharmaceutical and Specialty Solutions business and profit growth across all five operating segments. CEO Jason Hollar highlighted that the onboarding of new large customers and the integration of recent acquisitions, such as GI Alliance and Integrated Oncology Network, contributed to both top-line and segment profit gains. CFO Aaron Alt noted that operating leverage was achieved through a combination of disciplined cost control and efficiency initiatives, especially in the face of a flat revenue environment. Is now the time to buy CAH? Find out in our full research report (it's free). Revenue: $54.88 billion vs analyst estimates of $55.46 billion (flat year on year, 1% miss) Adjusted EPS: $2.35 vs analyst estimates of $2.15 (9.4% beat) Adjusted EBITDA: $872.8 million vs analyst estimates of $876.8 million (1.6% margin, in line) Adjusted EPS guidance for the full year is $8.10 at the midpoint, beating analyst estimates by 1.7% Operating Margin: 1.3%, in line with the same quarter last year Market Capitalization: $39.08 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lisa Gill (JPMorgan) asked about the sustainability of strong specialty and branded drug growth. CEO Jason Hollar responded that growth was broad-based and supported by secular demand, with new customer wins and GLP-1 sales contributing to volume gains. Allen Lutz (Bank of America) inquired about potential demand headwinds from tariffs and macroeconomic weakness. Hollar replied that pharmaceutical demand has historically been resilient during economic downturns, and no material pullback was observed. Eric Percher (Nephron) questioned how Cardinal Health plans to offset remaining tariff exposure. Hollar explained that most mitigation would come through operational actions and targeted price increases, particularly for Cardinal Health-branded products. Michael Cherny (Leerink Partners) probed the relative impact of tariffs versus other GMPD business factors. Hollar clarified that tariffs represent the main headwind, but operational improvements and cost reductions should partially offset the impact. Erin Wright (Morgan Stanley) requested updates on new customer onboarding and its impact on pharma growth. Hollar confirmed that $10 billion in new customer revenue was successfully onboarded and is expected to benefit results in coming quarters. In the coming quarters, the StockStory team will be monitoring (1) the pace and profitability of new customer and acquisition integrations, (2) sustained demand and margin trends in specialty pharmaceuticals, and (3) Cardinal Health's ability to mitigate tariff-related cost pressures in GMPD. Progress in ancillary businesses and the ramp-up of automation and technology investments will also be key markers of execution. Cardinal Health currently trades at $163.76, up from $141.14 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
