Financial Performance - Revenues for the three months ended December 31, 2023, increased to $80,898 million, up from $70,490 million in the same period of 2022, representing a growth of 18.9%[8] - Gross profit for the nine months ended December 31, 2023, was $9,243 million, slightly down from $9,292 million in 2022, indicating a decrease of 0.5%[8] - Operating income for the three months ended December 31, 2023, was $642 million, compared to $1,241 million in the same period of 2022, reflecting a decline of 48.3%[8] - Net income attributable to McKesson Corporation for the three months ended December 31, 2023, was $589 million, down from $1,079 million in 2022, a decrease of 45.5%[9] - Net income for the nine months ended December 31, 2023, was $2,330 million, a decrease of 19.6% compared to $2,896 million in the same period of 2022[26] - The company reported an operating profit of $879 million for the three months ended December 31, 2023, compared to $1.4 billion in the same period of 2022[159] - Income from continuing operations attributable to McKesson Corporation was $589 million for the three months ended December 31, 2023, compared to $1,078 million in 2022[73] - Diluted earnings per share of $4.42 for the three months ended December 31, 2023, down from $7.66 in the same period of 2022[73] - Diluted earnings per common share from continuing operations decreased to $4.42 for the three months and $16.39 for the nine months ended December 31, 2023, down from $7.65 and $19.32, respectively, in the prior year[178] Cash Flow and Liquidity - Cash and cash equivalents decreased to $1,982 million as of December 31, 2023, from $4,678 million as of March 31, 2023, a decline of 57.7%[13] - Cash provided by operating activities significantly decreased to $167 million from $1,834 million year-over-year[26] - Total cash, cash equivalents, and restricted cash at the end of the period was $1,982 million, down from $2,774 million a year earlier[26] - The company reported a net cash used in financing activities of $2,374 million, compared to $3,178 million in the previous year[26] - The company recognized a total gain of $9 million on debt extinguishments for the nine months ended December 31, 2023[89] Debt and Financing - Long-term debt rose to $5,625 million as of December 31, 2023, from $4,626 million as of March 31, 2023, an increase of 21.6%[13] - The company’s long-term debt issuances increased to $991 million from $499 million year-over-year[26] - The company completed a public offering of 4.90% Notes due July 15, 2028, for $400 million and 5.10% Notes due July 15, 2033, for $600 million[85] - The company repurchased $271 million principal amount of its 2024 Notes for $268 million in a Concurrent Tender Offer[87] - The company has a $4.0 billion senior unsecured credit facility, with the maturity date extended to November 2028[91] - As of December 31, 2023, the company had $218 million in commercial paper notes outstanding at a weighted average interest rate of 5.53%[92] Shareholder Returns - Cash dividends declared were $0.62 per common share for the three months ended December 31, 2023, compared to $0.54 per common share in the same period of 2022, an increase of 14.8%[10] - The company returned $2.6 billion to shareholders during the nine months ended December 31, 2023, through $2.3 billion in stock repurchases and $232 million in dividend payments[179] - During the three months ended December 31, 2023, the Company repurchased 1.9 million shares of common stock for $868 million at an average price of $457.16 per share[139] - The Company repurchased a total of 3.1 million shares under the ASR program at an average price of $321.05, totaling $1.0 billion[141] - An additional ASR program was initiated for $1.5 billion, resulting in the repurchase of 5.1 million shares at an average price of $295.16[144] - As of December 31, 2023, the total remaining authorization for stock repurchases was $7.3 billion[144] Acquisitions and Investments - The company completed the acquisition of Rx Savings Solutions, LLC for a total consideration of $692 million, including $600 million in cash and $92 million in contingent consideration[40][41] - McKesson formed SCRI Oncology, LLC with HCA Healthcare, acquiring a 51% controlling interest and paying $166 million in cash[45][46] - The company recognized fair value adjustment gains of $78 million on contingent consideration related to Rx Savings Solutions during the nine months ended December 31, 2023[41] - The carrying value of investments in equity securities of U.S. growth stage companies was $213 million at December 31, 2023[111] Legal and Regulatory Matters - The Company has paid approximately $1.5 billion to settling governmental entities as part of a settlement agreement, with an additional commitment of up to $6.3 billion through 2038[125] - The Company has made payments totaling $529 million associated with opioid-related settlements during the nine months ended December 31, 2023[128] - The Company has paid approximately $84 million to federally recognized Native American tribes as part of opioid-related claims, with an additional commitment of approximately $112 million through 2027[127] - The Company is involved in approximately 400 opioid-related cases brought by private plaintiffs, which are not included in the settlement agreements[129] - The Company has accrued liabilities for opioid-related claims, reflecting ongoing legal uncertainties and potential future losses[121] - The Company intends to vigorously defend itself against all opioid-related claims, asserting valid legal defenses[132] Operational Metrics - The U.S. Pharmaceutical segment generated revenues of $73.0 billion for the three months ended December 31, 2023, compared to $61.9 billion in 2022, reflecting a growth of approximately 18%[162] - The Prescription Technology Solutions segment reported revenues of $1.2 billion for the three months ended December 31, 2023, up from $1.1 billion in 2022[162] - The Medical-Surgical Solutions segment achieved revenues of $3.0 billion for the three months ended December 31, 2023, slightly increasing from $3.0 billion in 2022[162] - The International segment's revenues decreased to $3.6 billion for the three months ended December 31, 2023, down from $4.4 billion in 2022[162] - The provision for bad debts related to the bankruptcy of Rite Aid Corporation amounted to $515 million for the three months and $725 million for the nine months ended December 31, 2023[178] Tax Matters - The Company recognized a net discrete tax benefit of $141 million during the three months ended December 31, 2023, primarily due to the release of a valuation allowance[67] - As of December 31, 2023, the Company had $1.4 billion of unrecognized tax benefits, with $1.3 billion potentially reducing income tax expense if recognized[68] - A discrete tax benefit of $154 million was recognized for the three months ended December 31, 2023, related to the release of a valuation allowance on deferred tax assets[179] Restructuring and Impairment - The company incurred restructuring, impairment, and related charges of $4 million for the three months ended December 31, 2023, compared to $31 million in the same period of 2022, indicating a significant reduction in such charges[8] - Total restructuring charges anticipated across segments are approximately $125 million, with $101 million recorded through December 31, 2023[59] - Corporate restructuring charges amounted to $50 million for the nine months ended December 31, 2023, compared to $38 million in the prior year[178]

Shares of McKesson (MCK) have been strong performers lately, with the stock up 5.5% over the past month. The stock hit a new 52-week high of $508.09 in the previous session. McKesson has gained 9% since the start of the year compared to the 3.6% move for the Zacks Medical sector and the 1.8% return for the Zacks Medical - Dental Supplies industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the l ...

In its upcoming report, McKesson (MCK) is predicted by Wall Street analysts to post quarterly earnings of $7.05 per share, reflecting an increase of 2.2% compared to the same period last year. Revenues are forecasted to be $77.48 billion, representing a year-over-year increase of 9.9%.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Bef ...

The market expects McKesson (MCK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are ...

Core Viewpoint - McKesson (MCK) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an A grade for Value, indicating its potential for investment based on valuation metrics [2][3]. Valuation Metrics - MCK has a P/E ratio of 15.98, which is lower than the industry average of 18.58, suggesting it may be undervalued [2]. - The stock's Forward P/E has fluctuated between 12.75 and 16.26 over the past 52 weeks, with a median of 14.82 [2]. - MCK's PEG ratio stands at 1.53, compared to the industry average of 1.73, indicating a favorable growth outlook relative to its valuation [2]. - The PEG ratio has ranged from 1.23 to 1.55 in the past year, with a median of 1.39 [2]. Cash Flow Metrics - MCK's P/CF ratio is 15.63, significantly lower than the industry average of 20.18, which points to its attractive cash flow valuation [3]. - The P/CF ratio has varied between 11.52 and 15.88 over the last 52 weeks, with a median of 13.25 [3]. Overall Assessment - The combination of MCK's valuation metrics and strong earnings outlook suggests that the stock is likely undervalued, making it an impressive value stock at present [3].

Company Overview - McKesson Corporation (MCK) plans to sell Rexall Pharmacy Group, a Canadian drugstore chain acquired for approximately $2.2 billion seven years ago [1] - The acquisition of Rexall in 2016 was aimed at strengthening McKesson's position in Canada's pharmaceutical supply chain [1] Price Performance - Over the past six months, McKesson's shares have increased by 19.9%, contrasting with a 2.4% decline in the industry and a 3.9% rise in the S&P 500 [2] Sale Process - McKesson has been in discussions with potential buyers for Rexall throughout the summer, currently in the second round of offers without a set deadline for submissions [4] - Rexall operates 400 pharmacies in Canada and employs around 8,000 people; however, the pharmaceutical distribution division may not be included in the sale [4] Industry Context - Pharmaceutical dealmaking in Canada rose to $6.8 billion in 2023 from $1.8 billion in 2022, although it decreased from $7.5 billion in 2021 [4] - In 2021, McKesson divested its European businesses to Phoenix Group, a German drug distributor [4] Notable Developments - In December 2023, McKesson announced the availability of an FDA-approved drug for PNH treatment, which is expected to enhance its position in the global PNH treatment market and boost its Specialty Pharmacy Solutions business [5] Zacks Rank & Other Stocks - McKesson currently holds a Zacks Rank of 2 (Buy) [6] - Other top-ranked stocks in the medical sector include Integer Holdings Corporation, Acadia Healthcare, and Universal Health Services, all carrying a Zacks Rank of 2 [6]

McKessonCorporation (MCK) is well-poised for growth, backed by strategic collaborations and strength in the Distribution Solutions segment. However, the company’s opioid-related litigation expenses are a potential threat.Shares of this currently Zacks Rank #2 (Buy) company have risen 27.4% in the past year compared with the industry’s 9% growth. The S&P 500 Index has increased 20.6% in the same time frame.McKesson is a healthcare services and information technology company with a market capitalization of $6 ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside ...

Shares of McKesson Corporation (MCK) scaled a new 52-week high of $485.22 on Jan 3, 2024, before closing the session slightly lower at $480.34.Over the past year, this Zacks Rank #3 (Hold) stock has gained 28.4% compared with 11.7% growth of the industry and a 24.4% rise of the S&P 500 Composite.Over the past five years, the company registered earnings growth of 15.4% compared with the industry’s 9.1% rise. The company’s long-term expected growth rate of 10.5% compares with the industry’s growth projection ...

IRVING, Texas--(BUSINESS WIRE)--McKesson Corporation (NYSE: MCK) will release its third quarter fiscal 2024 financial results after market close on Wednesday, February 7, 2024. The company will host a live webcast of the earnings conference call for investors at 4:30 PM Eastern Time to review its financial results. McKesson management will be participating in the 42nd Annual J.P. Morgan Healthcare Conference on Tuesday, January 9, 2024. The live webcast for each event will be available on McKesson’s Inves ...