Core Viewpoint - McKesson's stock has underperformed compared to the broader market and its industry, raising questions about its future performance [1] Earnings Estimate Revisions - The current quarter's earnings estimate for McKesson is $7.56 per share, reflecting a year-over-year increase of +21.4%, although the Zacks Consensus Estimate has decreased by -2% in the last 30 days [3] - For the current fiscal year, the consensus earnings estimate is $31.42, indicating a +14.5% change from the previous year, with a slight decrease of -0.9% in the last month [3] - The next fiscal year's consensus estimate is $35.27, showing a +12.2% change year-over-year, with a -1% adjustment in the past month [3] Revenue Growth Projections - The consensus sales estimate for the current quarter is $90.14 billion, representing a +16.7% year-over-year increase [5] - For the current fiscal year, the revenue estimate is $356.2 billion, indicating a +15.3% change, while the next fiscal year's estimate is $386.64 billion, reflecting an +8.5% change [5] Last Reported Results and Surprise History - McKesson reported revenues of $79.28 billion in the last quarter, a +6.4% increase year-over-year, with an EPS of $7.88 compared to $7.27 a year ago [6] - The reported revenues were -4.72% below the Zacks Consensus Estimate of $83.21 billion, while the EPS exceeded estimates by +10.06% [7] - Over the last four quarters, McKesson surpassed consensus EPS estimates three times and revenue estimates twice [7] Valuation - Valuation metrics such as P/E, P/S, and P/CF are essential for assessing whether McKesson's stock is fairly valued compared to its historical values and peers [8] - The Zacks Value Style Score grades McKesson as A, indicating it is trading at a discount relative to its peers [9] Conclusion - McKesson's Zacks Rank of 3 suggests it may perform in line with the broader market in the near term, despite the mixed signals from earnings and revenue estimates [10]

Key TakeawaysMcKesson said that limited access to weight-loss treatments because of short supplies is negatively impacting its services sales.Fiscal 2025 first-quarter revenue was well short of analysts' estimates.McKesson warned of a slowdown in the growth rate for the unit that services patients on weight-loss medications. McKesson (MCK) shares tumbled Thursday, a day after the healthcare services provider warned that limited supply of GLP-1 weight-loss drugs is hurting sales. McKesson reported first-quar ...

McKesson Corporation (MCK) reported first-quarter fiscal 2025 adjusted earnings per share (EPS) of $7.88, which beat the Zacks Consensus Estimate of $7.16 by 10.1%. The bottom line also improved 8% on a year-over-year basis.Strong earnings were primarily driven by pre-tax gains of $110 million associated with McKesson Ventures' equity investments, which incurred a loss of $7 million in the year-ago quarter. A lower share count also boosted EPS, more than offsetting higher tax outgo.GAAP EPS was $7.00, down ...

Financial Data and Key Metrics Changes - Company reported first quarter revenues of $79.3 billion, reflecting a 6% year-over-year growth [7][23] - Adjusted earnings per diluted share increased 8% to $7.88, exceeding original expectations [7][26] - Gross profit was $3.1 billion, an increase of 4%, primarily due to specialty distribution growth [23] - The company raised its full-year adjusted earnings per diluted share guidance from $31.25 to a new range of $31.75 to $32.55 [7][34] Business Line Data and Key Metrics Changes - US Pharmaceutical segment revenues were $71.7 billion, an increase of 7%, driven by increased prescription volumes, including GLP-1 medications [27][28] - Prescription Technology Solutions segment delivered revenues of $1.2 billion, with operating profit unchanged from the prior year [30] - Medical-Surgical solutions segment revenues were $2.6 billion, an increase of 1%, but operating profit decreased by 15% [31] - International segment revenues were $3.7 billion, an increase of 6%, with operating profit rising 13% [32] Market Data and Key Metrics Changes - GLP-1 medications generated revenues of $8.8 billion, a 26% increase year-over-year [27] - The Canadian business showed organic growth supported by stable pharmaceutical volume trends [13] - The primary care channel experienced a decline, impacting the Medical-Surgical segment [14][31] Company Strategy and Development Direction - The company is focused on becoming a diversified healthcare services provider, emphasizing technology investments to enhance product offerings and operational efficiencies [9][10] - A strategic alignment of oncology-related assets was announced to improve patient care experiences and streamline operations [15][16] - The company is committed to driving sustainable core growth in its distribution business despite market challenges [14][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth targets despite mixed segment results in the first quarter [20][34] - The company anticipates continued growth in the US Pharmaceutical segment, particularly in oncology and specialty pharmaceuticals [35][36] - Management acknowledged challenges in the Medical-Surgical segment due to market normalization post-COVID [14][41] Other Important Information - The Board approved a 15% increase in the quarterly dividend and an additional $4 billion share repurchase authorization [7][22] - The company is investing in AI and technology to improve operational efficiencies and customer experiences [19][44] Q&A Session Summary Question: Understanding the mix of services within access - Management explained that the mix of services shifted unexpectedly, impacting revenue [50] Question: Factors driving profit growth in the U.S. Pharma segment - Management indicated that growth in specialty and oncology areas would drive profit growth into the 8% to 10% range [54][56] Question: Changes in the MedSurg business and market dynamics - Management noted a significant decline in demand for COVID-related products and a general softness in primary care [58][59] Question: Impact of formulary changes on HUMIRA revenues - Management confirmed that a formulary change to biosimilars impacted revenues [66] Question: Product launch delays in Prescription Technology Solutions - Management acknowledged that product delays affected revenue guidance but expressed confidence in the broader service portfolio [68] Question: Opportunities for improving buy-side economics with GLP-1s - Management highlighted ongoing discussions with manufacturers to enhance service value and access [72] Question: Performance and future contributions from ClarusONE - Management expressed satisfaction with ClarusONE's performance and its role in providing competitive pricing and supply availability [75]

For the quarter ended June 2024, McKesson (MCK) reported revenue of $79.28 billion, up 6.4% over the same period last year. EPS came in at $7.88, compared to $7.27 in the year-ago quarter.The reported revenue represents a surprise of -4.72% over the Zacks Consensus Estimate of $83.21 billion. With the consensus EPS estimate being $7.16, the EPS surprise was +10.06%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their nex ...

McKesson (MCK) came out with quarterly earnings of $7.88 per share, beating the Zacks Consensus Estimate of $7.16 per share. This compares to earnings of $7.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.06%. A quarter ago, it was expected that this prescription drug distributor would post earnings of $6.34 per share when it actually produced earnings of $6.18, delivering a surprise of -2.52%.Over the last four quarters ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13252 McKESSON CORPORATION (Exact name of registrant as specified in its charter) Delaware 94-3207296 (State or other juris ...

Financial Performance - Consolidated revenues for the first quarter were $79.3 billion, an increase of 6% compared to the previous year[1] - Adjusted Earnings per Diluted Share for the first quarter was $7.88, reflecting an 8% increase from $7.27 in the prior year[4] - The company raised its fiscal 2025 Adjusted Earnings per Diluted Share guidance to a range of $31.75 to $32.55, indicating a growth of 16% to 19% compared to the prior year[2] - Revenues for the three months ended June 2024 were $79,283 million, a 6% increase from $74,483 million in the same period last year[20] - Gross profit increased by 4% to $3,152 million compared to $3,022 million in the prior year[20] - Adjusted earnings per diluted share increased by 8% to $7.88 from $7.27[23] - Adjusted gross profit for the three months ended June 2024 was $3,060 million, a 4% increase from $2,936 million in the same period last year[26] - Total revenues for the quarter reached $79,283 million, reflecting a 6% increase from $74,483 million year-over-year[29] - Net income for the quarter was $960 million, a decrease from $997 million in the prior year[33] Segment Performance - The U.S. Pharmaceutical segment generated revenues of $71.7 billion, a 7% increase driven by higher prescription volumes, including specialty products and GLP-1 medications[7] - The Medical-Surgical Solutions segment reported revenues of $2.6 billion, a 1% increase, despite challenges in customer mix and product demand shifts[9] - The International segment achieved revenues of $3.7 billion, a 6% increase, attributed to higher pharmaceutical distribution volumes in Canada[10] - U.S. Pharmaceutical revenues increased by 7% to $71,715 million compared to $67,160 million in the previous year[29] - Operating profit for U.S. Pharmaceutical segment was $781 million, down 6% from $827 million in the same quarter last year[29] - The Prescription Technology Solutions segment's revenues were flat at $1.2 billion, impacted by lower contributions from third-party logistics[8] Shareholder Returns - The Board approved a 15% increase in the quarterly dividend to $0.71 per share, marking the eighth consecutive year of dividend increases[1] - The company returned $609 million to shareholders in the first quarter, including $527 million in stock repurchases and $82 million in dividends[5] - Dividends declared per common share increased by 15% to $0.62 from $0.54[20] Cash Flow and Expenses - McKesson's cash from operations for the first three months was $1.4 billion, resulting in negative Free Cash Flow of $1.5 billion due to capital expenditures[5] - Total operating expenses rose by 10% to $2,123 million, up from $1,922 million[20] - Net cash used in operating activities for the three months ended June 30, 2024, was $(1,380) million, an increase of 31% compared to $(1,052) million in the same period of 2023[35] - Free Cash Flow (Non-GAAP) for the three months ended June 30, 2024, was $(1,547) million, reflecting a 32% increase from $(1,176) million in the same period of 2023[35] - Cash and cash equivalents decreased to $2,302 million from $4,583 million at the end of the previous quarter[32] Assets and Liabilities - Total assets increased to $71,670 million from $67,443 million at the end of the previous quarter[32] - Total current liabilities rose to $56,434 million from $52,357 million in the previous quarter[32] - The company’s long-term debt remained stable at $5,584 million, slightly up from $5,579 million[32] Other Financial Metrics - Net income attributable to McKesson Corporation decreased by 4% to $915 million from $958 million year-over-year[20] - Diluted earnings per share remained stable at $7.00, compared to $7.02 in the previous year[20] - Other income increased significantly by 242% to $130 million from $38 million[20] - Interest expense increased by 60% to $75 million compared to $47 million in the prior year[20] - The company recognized a pre-tax net gain of $97 million related to a recapitalization event of one of its investments in equity securities[39] Charges and Expenditures - Claims and litigation charges for the three months ended June 30, 2024, included pre-tax charges of $114 million related to opioid-related claims[38] - Restructuring, impairment, and related charges for the three months ended June 30, 2024, amounted to $10 million, down from $52 million in the same period of 2023[37] - Payments for property, plant, and equipment increased by 36%, from $(78) million in 2023 to $(106) million in 2024[35] - Capitalized software expenditures rose by 33%, from $(46) million in 2023 to $(61) million in 2024[35]

So far in 2024, healthcare stocks have run into periodic earnings challenges compared to historical first quarters. For example, quarterly earnings for healthcare stocks across the board were down 25% compared to first-quarter 2023 earnings. Even with this setback, the healthcare sector maintained positive returns year-to-date and is still the second largest component of the S&P 500’s earnings in 2024, with only the technology sector ahead of it.Moreover, according to U.S. Bank, the healthcare sector modest ...

In its upcoming report, McKesson (MCK) is predicted by Wall Street analysts to post quarterly earnings of $7.16 per share, reflecting a decline of 1.5% compared to the same period last year. Revenues are forecasted to be $83.21 billion, representing a year-over-year increase of 11.7%.Over the last 30 days, there has been an upward revision of 0.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial for ...