McKesson (MCK) Tops Q3 EPS by 47c, Revenues Beat; Raises FY21 EPS Guidance Above Consensus

February 2, 2021 7:02 AM EST

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McKesson (NYSE: MCK) reported Q3 EPS of $4.60, $0.47 better than the analyst estimate of $4.13. Revenue for the quarter came in at $62.6 billion versus the consensus estimate of $61.71 billion.

  • Total revenues of $62.6 billion, reflecting 6% growth.
  • McKesson recorded a pre-tax charge of $8.1 billion related to opioid litigation, resulting in third-quarter Loss per diluted share of ($39.03).
  • Adjusted Earnings per diluted share of $4.60, an increase of 21%.
  • Board of Directors authorized an additional $2.0 billion share repurchase program.

“McKesson continued to demonstrate its operational excellence and extensive healthcare supply chain expertise, as we began the distribution of COVID-19 vaccine doses to the entire U.S. in the third quarter,” said Brian Tyler, chief executive officer. “McKesson’s long history of serving as the centralized distributor for the Vaccines for Children program for the Centers for Disease Control and Prevention, including during the H1N1 public health crisis, positions us well to distribute hundreds of millions of COVID-19 vaccines safely and efficiently to the right location, in the right quantity, and in the right condition. Our COVID-19 vaccine distribution has been highly successful, achieving all volume and timing requirements by the government, and I want to thank our 80,000 employees around the world for their tremendous efforts and dedication.”

“While the overall environment remains challenging due to the sustained impact of the COVID-19 pandemic, we are pleased to report third-quarter adjusted earnings results ahead of our expectations. McKesson’s performance reflects strong execution and the benefits from our ongoing strategic investments in the growth areas of oncology and biopharma services. Based on our year-to-date progress and the successful execution of distributing COVID-19 vaccines and ancillary supplies in the U.S., we are raising and narrowing our guidance range for fiscal 2021 and now expect Adjusted Earnings per diluted share of $16.95 to $17.25.”

GUIDANCE:

McKesson sees FY2021 EPS of $16.95-$17.25, versus the consensus of $16.42.

  • Increased fiscal 2021 Adjusted Earnings per diluted share guidance range to $16.95 to $17.25, from the previous range of $16.00 to $16.50.
  • Fiscal 2021 Adjusted Earnings per diluted share guidance assumes $0.25 to $0.35 related to COVID-19 vaccine distribution and $0.20 to $0.30 related to the kitting and distribution of ancillary supplies for COVID-19 vaccines.

For earnings history and earnings-related data on McKesson (MCK) click here.



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