Cardinal Health CAH reported third-quarter fiscal 2016 adjusted earnings of $1.43 per share, which beat the Zacks Consensus Estimate by a dime and increased 20.2% on a year-over-year basis.Cardinal Health Inc. - Earnings Surprise | FindTheBestQuarter DetailsRevenues jumped up 21% year over year to $30.66 billion, above the Zacks Consensus Estimate of $30.50 billion. The growth was driven by strong performance by the Pharmaceutical and Medical segments.Pharmaceutical revenues surged 22% to $27.53 billion on robust growth in new and existing customer count as well as acquisitions. Medical segment revenues increased 13% to $3.14 billion.Adjusted gross margin expanded 500 basis points (bps) on a year-over-year basis to 17%.Distribution, selling, general and administrative (SG&A) expenses increased 14% on a year-over-year basis to $914 million in the reported quarter.Adjusted operating margin expanded 300 bps on a year-over-year basis to 20%.Pharmaceutical segment profits in the quarter increased 16% to $660 million owing to net growth from existing and new customers, and contribution from acquisitions. Medical segment profits surged 26% to $128 million.GuidanceCardinal Health revised its fiscal 2016 adjusted earnings guidance range at $5.17-$5.27 per share, from the earlier estimation of $5.15–$5.35.Our TakeCardinal Health is banking on acquisitions, strategic buyouts, joint ventures and supply agreements to drive growth. We believe that the Red Oak sourcing venture with CVS Health CVS and partnerships with Henry Schein HSIC and Bayer Healthcare present significant growth opportunities.Furthermore, we believe that growth in new and existing customer count as well as consistent stock repurchases will boost earnings. However, foreign exchange rate volatility and generic pricing pressure are major concerns.Zacks Rank & A Stock to ConsiderCurrently, Cardinal Health carries a Zacks Rank #4 (Sell).Align Technology ALGN is a better-ranked stock in the industry with a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ALIGN TECH INC (ALGN): Free Stock Analysis Report HENRY SCHEIN IN (HSIC): Free Stock Analysis Report CVS HEALTH CORP (CVS): Free Stock Analysis Report CARDINAL HEALTH (CAH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research