McKesson Q2 revenue slightly beats estimates, helped by increased prescription volumes
Overview
US healthcare distributor's fiscal Q2 revenue rose 8%, slightly beating analyst expectations
Adjusted EPS for fiscal Q2 rose 18%, beating analyst expectations
Company raised full-year adjusted EPS guidance, citing operational strength and strategic investments
Outlook
McKesson raises fiscal 2027 adj EPS guidance to $45.60-$46.40 from $44.20-$45.00
Company expects fiscal 2027 adj EPS growth of 17% to 19% over prior year
Result Drivers
SEGMENT GROWTH - Co said revenue growth was driven by increased prescription volumes and specialty product distribution in North American Pharmaceutical and Oncology & Multispecialty segments
OPERATIONAL PERFORMANCE - Adjusted EPS growth attributed to strong operational growth across North American Pharmaceutical, Oncology & Multispecialty, and Prescription Technology Solutions segments, and a lower share count
SPECIALTY PRODUCTS - Growth in distribution of specialty products to health systems and strategic accounts contributed to higher segment operating profit
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $110.96 bln | $109.88 bln (12 Analysts) |
Q2 Adjusted EPS | Beat | $11.68 | $10.70 (15 Analysts) |
Q2 EPS | $10.44 | ||
Q2 Adjusted Net Income | Beat | $1.36 bln | $1.25 bln (9 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for McKesson Corp is $1,018.50, about 1.9% above its November 3 closing price of $999.62
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)