NYSE$MCK

McKesson Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported an increase in revenue and adjusted earnings per share, driven by growth in the U.S. Pharmaceutical segment and Medical-Surgical Solutions segment.

McKesson reported a 6% increase in total revenues, reaching $60.8 billion. Earnings per diluted share increased to $3.54, and adjusted earnings per diluted share rose by 33% to $4.80. The company also completed a joint venture of its German wholesale business with Walgreens Boots Alliance.

  • Total revenues increased by 6% year-over-year to $60.8 billion.
  • Earnings per diluted share increased by $7.53 to $3.54.
  • Adjusted Earnings per diluted share increased by 33% to $4.80.
  • Fiscal 2021 Adjusted Earnings per diluted share guidance range increased to $16.00 to $16.50.

Headline financials

Total Revenue

$60.8B

Previous: $57.6B+5.5%
EPS (adj)

$4.80

Previous: $3.60+33.3%
Capital Expenditures

-$174M

Previous: -$126M-38.1%
Free Cash Flow

$403M

Previous: -$856M+147.1%
Net Income

$577M

Previous: -$730M+179.0%
Operating Income

$634M

Previous: $626M+1.3%
Gross Profit

$3B

Previous: $2.87B+4.6%
Cash & Equivalents

$3.09B

Previous: $1.36B+127.9%
Total Assets

$61.6B

Previous: $59B+4.3%

Revenue & EPS history

McKesson · Revenue · Quarterly

$60.8B

Q2 2021+5.5%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

McKesson · $3.17B total across 2 segments · Q2 2021

  • Medical-Surgical Solutions
    $2.5B+21.6%
  • Prescription Technology Solutions
    $668M+6.7%

Forward guidance

McKesson raised fiscal 2021 Adjusted Earnings per diluted share guidance to $16.00 to $16.50 from the previous range of $14.70 to $15.50, reflecting strong execution and earlier improvement in volumes relative to expectations through the first half of fiscal 2021.

Tailwinds

  • Strong execution
  • Earlier improvement in volumes
  • Adjusted Earnings per diluted share related to the kitting and storage of ancillary supplies for future COVID-19 vaccines: $0.15 to $0.20

Headwinds

  • Full recovery of pharmaceutical prescription volumes and patient visits is not likely to occur this fiscal year.

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 Q2 2021

Historical avgQ2 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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