Core Viewpoint - Analyst recommendations, particularly for McKesson (MCK), show a strong bias towards positive ratings, which may not always align with retail investors' interests [1][3][5]. Group 1: Analyst Recommendations - McKesson has an average brokerage recommendation (ABR) of 1.41, indicating a consensus between Strong Buy and Buy, with 75% of recommendations being Strong Buy [1]. - Out of 16 recommendations, 12 are Strong Buy and one is Buy, reflecting a significant positive bias from brokerage analysts [1][2]. - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the best price increase potential, often due to the vested interests of brokerage firms [2][5]. Group 2: Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that categorizes stocks based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to ABR [3][4]. - The Zacks Rank is displayed in whole numbers (1 to 5) and is driven by earnings estimate revisions, while ABR is calculated based on brokerage recommendations and may not be up-to-date [4][6]. - The Zacks Consensus Estimate for McKesson has increased by 1.3% over the past month to $32.02, contributing to a Zacks Rank 2 (Buy) for the company [7]. Group 3: Investment Implications - The growing optimism among analysts regarding McKesson's earnings prospects, reflected in the upward revisions of EPS estimates, suggests potential for stock price appreciation [7]. - The Buy-equivalent ABR for McKesson can serve as a useful guide for investors, but it is advisable to validate it with other analytical tools like Zacks Rank [7].

McKesson Corporation (MCK) , on Monday, inked a definitive agreement to acquire a controlling interest (representing approximately 70% ownership) in Community Oncology Revitalization Enterprise Ventures, LLC (Core Ventures), subject to customary closing conditions. Florida Cancer Specialists & Research Institute, LLC (“FCS”) physicians will retain a minority interest in Core Ventures.Core Ventures, a business and administrative services organization, was established by FCS.Following the completion of the tr ...

Core Viewpoint - McKesson (MCK) is experiencing strong momentum with an 18.3% share price increase year to date, outperforming the industry growth of 0.6% and the S&P 500's 16.5% rise [1] Group 1: Company Performance - McKesson has raised its adjusted earnings per share (EPS) guidance for fiscal 2025 to a range of $31.75-$32.55, up from $31.25-$32.05, indicating a growth of 16-19% from the previous year [3] - The company expects revenues to grow by 15-17% compared to the prior year [3] - The U.S. Pharmaceutical segment has driven significant growth, with increased prescription volumes, particularly from specialty products and GLP-1 medications [3] Group 2: Market Dynamics - The COVID-19 pandemic has led to improved demand across various medical sectors, particularly in surgeries, contributing to McKesson's growth [4] - Rising product pricing is positively impacting sales [4] - The launch of Project Oasis aims to advance health equity for at-risk populations in underserved communities, which is expected to drive demand for extended and primary care [4] Group 3: Challenges - The Medical-Surgical business faced challenges in the primary care channel during the first quarter, raising concerns about its performance [5] - Although McKesson is enhancing operational efficiency and cost optimization, the benefits may take time to reflect in overall performance [5]

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 ...