UPDATE 3-Cardinal profit tops estimates; ups forecast

* Cardinal EPS ex-items 69 cents vs St view 61 cents

* Revenue up 2 percent at $25.4 billion

* Raises full-year guidance to $2.54-$2.60/shr (Updates with background, analyst comment)

BOSTON, Feb 3 (Reuters) - Drug wholesaler Cardinal Health Inc (CAH.N) reported fiscal second-quarter results that topped expectations, and raised its full-year forecast as it benefited from acquisitions, a lower-than-expected tax rate, and increased sales of generic drugs.

Earnings from continuing operations profit fell to $215 million, or 61 cents a share, from $230 million, or 64 cents a share, a year ago.

The decline reflected acquisition-related costs, and prior-year gains from the sale of stock and a litigation benefit.

Excluding one-time items, however, the company earned 69 cents a share. Analysts had expected earnings of 61 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 2 percent to $25.4 billion. Analysts had expected revenue of $25.12 billion.

"Overall we view the quarter's results very positively," said Lisa Gill, an analyst at J.P. Morgan in a research note. "Operating metrics point to continued improvement in drug distribution as the company sells more generics to customers and continues to improve their customer mix."

Cardinal distributes drugs and other medical products, makes surgical gowns, gloves, and scrubs, as well as surgical and procedure kits. It also distributes radioactive pharmaceuticals and provides inventory and supply chain management services.

Generic drugs sales are increasing as more branded pharmaceuticals lose patent protection. In addition, the price of branded drugs tends to rise ahead of a patent expirations.

These price increases help drug distributors, which take a percentage.

Dublin, Ohio-based Cardinal said on Thursday it expects full year earnings excluding one-time items, of between $2.54 and $2.60 a share, up from a previous range of $2.38 to $2.48 a share.

Sales of the company's medical products fell 1 percent, due to commodity pressures and a light flu season compared with the prior year, and "sluggish in-patient procedural volumes."

The company's recent acquisition of Kinray Inc for $1.3 billion is expected to increase the company's presence in the independent pharmacy market, and its acquisition of Yong Yu for $470 million will expand its presence in China. (Reporting by Toni Clarke; Editing by Derek Caney, Dave Zimmerman)