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 ...

McKesson (MCK) is witnessing strong momentum, with its shares having rallied 18.3% year to date compared with 0.6% growth of the industry. The S&P 500 Composite has risen 16.5% 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 — Distributio ...

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.Over the past month, shares of this prescription drug distributor have returned -5%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Medical - Dental Supplies industry, which McKesson falls in, has gained 0.1%. The key question now is: What could be the stock's future direction?A ...

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 ...

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]