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 ...

McKesson (MCK) closed the most recent trading day at $629.09, moving +1.96% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.37%. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 2.3%.Prior to today's trading, shares of the prescription drug distributor had gained 5.77% over the past month. This has outpaced the Medical sector's gain of 0.74% and the S&P 500's gain of 1.11% in that time.Investors will be eagerly watching for the performance ...

McKesson (MCK) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on August 7, 2024, might help the stock move higher if these key numbers are better than expectati ...

The most recent trading session ended with McKesson (MCK) standing at $600.16, reflecting a +0.74% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.11% gain on the day. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.The prescription drug distributor's shares have seen an increase of 0.43% over the last month, surpassing the Medical sector's loss of 0.54% and the S&P 500's loss of 1.16%.Analysts and investors alike will be keeping a close eye o ...

McKesson (MCK) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this prescription drug distributor have returned -1.6% over the past month versus the Zacks S&P 500 composite's -0.3% change. The Zacks Medical - Dental Supplies industry, to which McKesson belongs, has lost 1.1% over this period. Now the key question is: Where could the stock be headed in the near term?Whi ...

McKesson (MCK) is witnessing strong momentum, with its shares having rallied 26.1% year to date against 1.5% decline of the industry. The S&P 500 composite has risen 16.9% during the same time frame.With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.Headquartered in San Francisco, CA, McKesson is a healthcare services and information technology company with two operating segments — Distribution Sol ...

McKesson Corporation (MCK) is well-poised for growth in the coming quarters, courtesy of its strong Biologics business. The optimism led by a solid fourth-quarter fiscal 2024 performance and improving demand for healthcare are expected to contribute further. However, stiff competition and weaker generic pharmaceutical pricing trends persist.Over the past year, this Zacks Rank #3 (Hold) stock has rallied 41.4%.The renowned health care services and information technology company has a market capitalization of ...

In the latest trading session, McKesson (MCK) closed at $575.23, marking a -1.98% move from the previous day. This change lagged the S&P 500's daily loss of 0.88%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.95%.Shares of the prescription drug distributor witnessed a gain of 0.35% over the previous month, beating the performance of the Medical sector with its loss of 1.09% and underperforming the S&P 500's gain of 5.11%.The investment community will be closely mo ...