McKesson Co. (MCK) Expected to Post Earnings of $3.11 Per Share

Equities research analysts predict that McKesson Co. (NYSE:MCK) will announce $3.11 earnings per share for the current fiscal quarter, Zacks reports. Three analysts have provided estimates for McKesson’s earnings, with the highest EPS estimate coming in at $3.34 and the lowest estimate coming in at $2.90. McKesson posted earnings per share of $2.90 in the same quarter last year, which would suggest a positive year-over-year growth rate of 7.2%. The business is scheduled to issue its next quarterly earnings results on Thursday, July 25th.

According to Zacks, analysts expect that McKesson will report full year earnings of $14.10 per share for the current year, with EPS estimates ranging from $13.65 to $14.29. For the next year, analysts forecast that the business will post earnings of $15.25 per share, with EPS estimates ranging from $14.86 to $15.43. Zacks Investment Research’s EPS averages are a mean average based on a survey of sell-side research analysts that follow McKesson.

McKesson (NYSE:MCK) last issued its earnings results on Wednesday, May 8th. The company reported $3.69 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $3.66 by $0.03. McKesson had a return on equity of 29.02% and a net margin of 0.02%. The business had revenue of $52.43 billion during the quarter, compared to analysts’ expectations of $53.14 billion. During the same period in the prior year, the business earned $3.49 EPS. The business’s revenue for the quarter was up 1.6% compared to the same quarter last year.

Several equities research analysts have weighed in on MCK shares. Zacks Investment Research upgraded McKesson from a “hold” rating to a “buy” rating and set a $144.00 target price for the company in a report on Monday, February 4th. Barclays reiterated a “hold” rating and issued a $130.00 target price on shares of McKesson in a report on Friday, February 1st. Deutsche Bank upgraded McKesson from a “sell” rating to a “hold” rating and set a $175.00 target price for the company in a report on Friday, January 25th. UBS Group started coverage on McKesson in a report on Thursday, January 17th. They issued a “neutral” rating and a $134.00 target price for the company. Finally, Wolfe Research started coverage on McKesson in a report on Tuesday, April 2nd. They issued an “outperform” rating for the company. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the company’s stock. McKesson has an average rating of “Hold” and an average price target of $134.90.

Shares of MCK stock traded down $0.62 during mid-day trading on Friday, hitting $125.69. The stock had a trading volume of 60,989 shares, compared to its average volume of 1,522,885. McKesson has a 12-month low of $106.11 and a 12-month high of $151.86. The stock has a market capitalization of $23.75 billion, a price-to-earnings ratio of 9.28, a P/E/G ratio of 1.27 and a beta of 1.23. The company has a current ratio of 1.02, a quick ratio of 0.58 and a debt-to-equity ratio of 0.88.

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Monday, June 3rd will be given a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 1.24%. The ex-dividend date is Friday, May 31st. McKesson’s dividend payout ratio is currently 11.50%.

In related news, EVP Lori A. Schechter sold 2,766 shares of the company’s stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $133.59, for a total transaction of $369,509.94. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 0.87% of the company’s stock.

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. boosted its stake in shares of McKesson by 2.3% in the fourth quarter. BlackRock Inc. now owns 15,773,706 shares of the company’s stock worth $1,742,522,000 after buying an additional 358,982 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its stake in shares of McKesson by 8,651.1% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 8,416,267 shares of the company’s stock worth $76,000 after buying an additional 8,320,093 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in shares of McKesson by 8.6% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,519,367 shares of the company’s stock worth $609,725,000 after buying an additional 435,844 shares during the last quarter. FMR LLC boosted its stake in shares of McKesson by 16.7% in the first quarter. FMR LLC now owns 5,094,147 shares of the company’s stock worth $596,321,000 after buying an additional 727,954 shares during the last quarter. Finally, Pzena Investment Management LLC boosted its stake in shares of McKesson by 19.7% in the first quarter. Pzena Investment Management LLC now owns 3,683,196 shares of the company’s stock worth $431,155,000 after buying an additional 606,781 shares during the last quarter. Institutional investors and hedge funds own 86.35% of the company’s stock.

About McKesson

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates in three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products; and offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices.

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Earnings History and Estimates for McKesson (NYSE:MCK)

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