Cardinal Health reported an 11% increase in fiscal first-quarter earnings and reiterated its 2007 forecast this morning. The provider of health-care products and services said that net income totaled $301.8 million, or 82 cents per share, compared to its year-ago results of $270.7 million, or 66 cents per share. On an adjusted basis, earnings crept up to 86 cents per share. Revenue edged 5% higher to $21.97 billion from $20.94 billion in the year-ago quarter.

While adjusted earnings fell right in line with analysts' predictions, revenue fell short the consensus estimate called for sales of $22.51 billion. In a statement, Cardinal said it's disappointed with the performance in our health-care supply-chain-services-pharmaceutical segment, and noted that Mark Parrish, who headed up that division, will depart the company. Chief financial officer Jeffrey Henderson will fill the role on an interim basis.

Option traders were feeling skeptical ahead of the report; CAH's Schaeffer's put/call open interest ratio checks in at 1.43, higher than 88% of other such readings taken in the past 52 weeks. Cardinal shares closed last week nearly flat with their 20-week moving average, a trendline that has effectively stifled the stock's progress since June 2007.