McKesson (MCK) Boosts FY17 EPS Outlook

McKesson Corporation (NYSE: MCK) announced that for the fiscal year ending March 31, 2017, the company has updated its previous guidance range of $13.30 to $13.80 per diluted share to a new range of $13.43 to $13.93 per diluted share, which continues to exclude approximately 12 to 15 cents in expected charges from Adjusted Earnings related to the Cost Alignment Plan the company announced in March 2016.

*** The Street sees FY17 EPS of $13.52.

The updated outlook is driven by the early adoption of Accounting Standards Update 2016-09 as released by the Financial Accounting Standards Board, which relates to stock-based compensation, and the impact of foreign currency exchange effects, specifically related to British pound sterling-denominated activity. The change in accounting for stock-based compensation will drive an increase of approximately twenty cents per diluted share in Fiscal 2017, offset by approximately seven cents per diluted share in incremental impact from our original assumption related to foreign currency exchange effects. Excluding these two items, the underlying key Fiscal 2017 assumptions provided in McKesson’s press release on May 4, 2016 are unchanged.

McKesson is hosting its Investor Day today in Boston, Massachusetts. A webcast of the presentation is available through McKesson’s website, www.mckesson.com, live from 9:00 AM to 1:00 PM ET today and on replay afterwards. Shareholders are encouraged to review McKesson’s SEC reports, which are available at www.mckesson.com under the “Investors” tab.

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