Cardinal Health started off its fiscal year with a 25 percent increase in net income despite a drop in revenue. Company officials upped their earnings per share estimate for the year.

October 31, 2013

Cardinal Health started off its fiscal year with a 25 percent increase in net income despite a drop in revenue. Company officials upped their earnings per share estimate for the year.

The Dublin-based drug and medical-supply distribution company reported first quarter revenue of $24.5 billion, a 5 percent drop from the previous first quarter. This was expected, given the loss of contracts with Express Scripts and Walgreens.

"We were able to partially offset this revenue loss with growth in existing customers and the contribution from new businesses," said Cardinal CEO George Barrett.

Earnings were $339 million, or 99 cents per share, beating analysts' predictions.

Cardinal was helped by tax credits valued at 18 cents per share.

Barrett said the company has raised its earnings per share expectations for the year to a range of $3.62 to $3.72, up from $3.45 to $3.60.

Company shares were up more than 4 percent in morning trading.