NYSE$MCK

McKesson Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

McKesson's financial performance was flat year-over-year, but earnings per share increased. The company raised its fiscal year 2021 adjusted earnings per diluted share guidance.

McKesson reported flat revenues year-over-year at $55.7 billion. However, earnings per diluted share increased by 20% to $2.72. Adjusted earnings per diluted share decreased by 16% to $2.77. The company raised its fiscal year 2021 adjusted earnings per diluted share guidance to a range of $14.70 to $15.50.

  • Total revenues were flat year-over-year at $55.7 billion.
  • Earnings per diluted share increased 20% to $2.72.
  • Adjusted Earnings per diluted share decreased 16% to $2.77.
  • Fiscal 2021 Adjusted Earnings per diluted share guidance range increased to $14.70 to $15.50.

Headline financials

Total Revenue

$55.7B

Previous: $55.7B-0.1%
EPS (adj)

$2.77

Previous: $3.31-16.3%
Dividends Declared Per Common Share

$0.42

Previous: $0.39+7.7%
Medical-Surgical Solutions Adj. Op. Profit

$124M

Previous: $159M-22.0%
Capital Expenditures

-$72M

Previous: -$87M+17.2%
Free Cash Flow

$372M

Previous: $336M+10.7%
Net Income

$444M

Previous: $423M+5.0%
Operating Income

$678M

Previous: $634M+6.9%
Gross Profit

$2.7B

Previous: $2.79B-3.1%
Cash & Equivalents

$2.61B

Previous: $1.95B+34.2%
Total Assets

$57.7B

Previous: $61.7B-6.5%

Revenue & EPS history

McKesson · Revenue · Quarterly

$55.7B

Q1 2021-0.1%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

McKesson · $1.8B total across 1 segment · Q1 2021

  • Medical-Surgical Solutions
    $1.8B-5.4%

Forward guidance

McKesson raised its fiscal 2021 Adjusted Earnings per diluted share guidance to $14.70 to $15.50 from the previous range of $13.95 to $14.75, reflecting earlier improvement in volumes relative to original expectations. The company continues to expect Adjusted Earnings per diluted share growth in the second half of fiscal 2021.

Tailwinds

  • Volumes across the business improved earlier than anticipated.
  • Increased fiscal 2021 Adjusted Earnings per diluted share guidance range to $14.70 to $15.50.
  • Strong execution of employees around the world
  • Commitment to returning cash to shareholders and confidence in its outlook
  • Continue to expect Adjusted Earnings per diluted share growth in the second half of fiscal 2021

Headwinds

  • Lower prescription volumes
  • Lower primary care patient visits across the enterprise
  • Branded to generic conversions
  • Lapping of the prior year contribution from the company’s now separated investment in Change Healthcare LLC
  • Declines in primary care patient visits

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.1%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+16.5%

Q3 2026

Best reaction

-21.7%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+0.2%-3.4%+2.8%
Q3 2026+16.5%+13.8%+11.8%
Q2 2026+1.5%+1.4%-4.2%
Q1 2026-5.8%-6.4%-2.3%
Q4 2025+0.4%-1.2%+3.3%
Q3 2025-1.2%+0.6%+6.1%
Q2 2025+15.7%+17.2%+14.9%
Q1 2025-10.9%-10.3%-17.9%
Q4 2024+1.9%+5.0%+9.9%
Q3 2024-2.5%-2.4%+4.1%
Q2 2024-1.7%+1.0%+2.0%
Q1 2024+7.4%+4.2%+1.8%
Q4 2023+6.2%+6.6%+5.1%
Q3 2023-3.2%-5.4%-8.7%
Q2 2023+0.1%+1.9%-2.5%
Q1 2023+0.8%+3.7%+8.6%
Q4 2022+4.5%+3.1%-1.1%
Q3 2022+4.1%+5.2%+9.7%
Q2 2022+5.3%+6.6%+3.6%
Q1 2022-3.3%-4.6%-0.1%
Q4 2021+4.5%+4.7%+3.1%
Q3 2021+1.0%+1.9%-4.1%
Q2 2021+9.2%+12.4%+17.8%
Q1 2021+4.6%+1.2%+4.1%
Q4 2020+0.8%+3.3%+8.3%
Q3 2020+5.7%+8.6%+0.8%
Q2 2020-11.0%-7.9%-3.2%
Q1 2020+4.0%+1.5%-3.0%
Q4 2019+7.1%+0.6%+3.7%
Q3 2019+1.9%+5.4%-0.4%
Q2 2019-2.6%+2.1%-0.3%
Q1 2019-7.1%-5.8%-2.8%
Q4 2018-0.7%-3.8%+1.4%
Q3 2018-5.7%-9.7%-11.2%
Q2 2018-10.4%-8.9%-4.4%
Q1 2018-2.3%-3.1%-11.3%
Q4 2017+7.7%+11.9%+12.5%
Q3 2017-6.6%-7.6%+1.7%
Q2 2017-21.7%-18.5%-9.8%
Q1 2017-1.4%-2.1%-6.9%
Q4 2016+2.7%
Q3 2016-6.4%
Q2 2016-2.0%
Q1 2016-4.1%
Q4 2015+1.7%
Q3 2015+5.7%
Q2 2015-2.1%
Q1 2015+2.2%
Q4 2014+5.3%
Q3 2014+0.7%
Q2 2014+8.3%
Q1 2014+5.4%
Q4 2013+7.3%
Q3 2013-2.3%
Q2 2013+3.4%
Q1 2013-1.0%
Q4 2012-0.7%
Q3 2012+3.0%
Q2 2012+6.3%
Q1 2012+0.7%
Q4 2011-0.2%
Q3 2011+2.3%
Q2 2011+6.0%
Q1 2011-0.7%
Q4 2008+3.8%
Q4 2010+3.8%
Q3 2010-3.1%
Q3 2009-3.1%
Q2 2010-3.2%
Q2 2009+8.9%
Q1 2009+8.9%
Q1 2010+8.9%
Q4 2009+8.9%

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