NYSE$MCK

McKesson Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a solid start to fiscal year 2023 with revenue increase and raised adjusted earnings per diluted share guidance.

McKesson Corporation reported a 7% increase in total revenues to $67.2 billion and a 5% increase in Adjusted Earnings per Diluted Share to $5.83. The company raised its fiscal 2023 Adjusted Earnings per Diluted Share guidance to $23.95 to $24.65.

  • Total revenues increased by 7% to $67.2 billion.
  • Earnings per diluted share from continuing operations increased by $2.16 to $5.25.
  • Adjusted Earnings per Diluted Share increased by 5% to $5.83.
  • Fiscal 2023 Adjusted Earnings per Diluted Share guidance increased to $23.95 to $24.65.

Headline financials

Total Revenue

$67.2B

Previous: $62.7B+7.1%
EPS (adj)

$5.83

Previous: $5.56+4.9%
Capital Expenditures

-$71M

Previous: -$93M+23.7%
Free Cash Flow

$697M

Previous: $393M+77.4%
Net Income

$768M

Previous: $486M+58.0%
Operating Income

$1.04B

Previous: $568M+82.4%
Gross Profit

$3.02B

Previous: $3.03B-0.3%
Cash & Equivalents

$2.23B

Previous: $2.42B-7.8%
Total Assets

$62.3B

Previous: $62.9B-1.0%

Revenue & EPS history

McKesson · Revenue · Quarterly

$67.2B

Q1 2023+7.1%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

McKesson · $3.66B total across 2 segments · Q1 2023

  • Medical-Surgical Solutions
    $2.59B+2.5%
  • Prescription Technology Solutions
    $1.07B+21.0%

Forward guidance

McKesson raised fiscal 2023 Adjusted Earnings per Diluted Share guidance to $23.95 to $24.65 to reflect first-quarter operating performance and increased contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and COVID-19 tests.

Tailwinds

  • $0.35 to $0.45 related to the U.S. government’s COVID-19 vaccine distribution program
  • $0.75 to $0.95 related to the U.S. government’s kitting, storage, and distribution of ancillary supplies program and COVID-19 tests
  • Fiscal 2023 Adjusted Earnings per Diluted Share guidance continues to assume approximately $3.5 billion of share repurchases.
  • The vaccine distribution contract has been extended through July 2023
  • The kitting, storage, and distribution of ancillary supplies contract has been extended through January 2023.

Headwinds

  • ($0.11) related to year-to-date net gains and losses associated with McKesson Ventures’ equity investments
  • lower revenues in the International segment as a result of the planned progress with McKesson's divestiture of its European businesses
  • higher tax rate and lower contribution from COVID-19 vaccine distribution, kitting, and storage programs with the U.S. government.
  • the divestitures of McKesson’s Austrian and UK businesses
  • lower sales of COVID-19 tests and lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program

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 2023

Historical avgQ1 2023

+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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