UPDATE 2-Cardinal Health quarterly earnings rise

* Fiscal Q1 adjusted EPS 73 cents vs Wall St estimate 72

* Sales rise 10 pct to $26.8 billion

* Reiterates fiscal 2012 financial outlook

* Failure to raise forecast dampens share rise -analysts

By Debra Sherman

Oct 27 (Reuters) - Drug wholesaler Cardinal Health reported higher quarterly adjusted earnings on Thursday as sales improved in both its pharmaceutical and medical businesses.

But share gains were limited by mild disappointment that the drug wholesaler did not raise its outlook for the full year, analysts said. Cardinal Health shares were up 0.2 percent at $44.20 late on Thursday morning.

During a conference call, Cardinal executives noted an improvement in utilization, or the usage of many medical services and products, except for nuclear medicine.

"The vast majority of our businesses have held up very well and that's actually shown some pretty robust growth," Chief Financial Officer Jeff Henderson told analysts. "We definitely felt effect of what appears to be a fairly soft market in the low energy cardiac imaging area, so I'd say that would be the one exception."

For its 2012 fiscal first quarter ended Sept. 30, adjusted earnings from continuing operations rose to $256 million, or 73 cents per diluted share, from $231 million or 66 cents per diluted share a year earlier.

Analysts on average had expected adjusted earnings from continuing operations of 72 cents per share, according to Thomson Reuters I/B/E/S.

Quarterly revenue rose 10 percent to $26.8 billion.

Revenue from its pharmaceutical business grew a stronger-than-expected 9.6 percent, helped by acquisitions, with improved operating margins.

Medical unit revenue increased by 9.7 percent, but higher commodity prices weighed on margins.

The company also reiterated its fiscal 2012 outlook, calling for earnings per share of $3.04 to $3.19.

"We believe investors may be disappointed, especially after the very strong quarter reported by McKesson yesterday, that management has maintained guidance for fiscal 2012," JP Morgan analyst Lisa Gill wrote in a research note, adding that it is still early in the year for management to raise expectations.

McKesson Corp reported higher-than-expected quarterly profit and revenue growth on Wednesday, and also raised its full-year earnings forecast.