NYSE$MCK

McKesson Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

McKesson reported a 5% increase in total revenues and a decrease of 1% in adjusted earnings per diluted share.

McKesson Corporation reported a 5% increase in total revenues to $70.2 billion for the second quarter of fiscal year 2023. Earnings per diluted share from continuing operations increased to $6.46, while adjusted earnings per diluted share decreased by 1% to $6.06. The company raised its full-year adjusted earnings per diluted share guidance.

  • Total revenues increased by 5% to $70.2 billion.
  • Earnings per diluted share from continuing operations increased by $4.75 to $6.46.
  • Adjusted Earnings per Diluted Share decreased 1% to $6.06.
  • Fiscal 2023 Adjusted Earnings per Diluted Share guidance range increased to $24.45 to $24.95.

Headline financials

Total Revenue

$70.2B

Previous: $66.6B+5.4%
EPS (adj)

$6.06

Previous: $6.15-1.5%
Capital Expenditures

-$157M

Previous: -$186M+15.6%
Free Cash Flow

$769M

Previous: $81M+849.4%
Net Income

$926M

Previous: $267M+246.8%
Operating Income

$1.12B

Previous: $539M+108.5%
Gross Profit

$3.1B

Previous: $3.35B-7.7%
Cash & Equivalents

$2.92B

Previous: $2.15B+35.6%
Total Assets

$63.1B

Previous: $63.6B-0.8%

Revenue & EPS history

McKesson · Revenue · Quarterly

$70.2B

Q2 2023+5.4%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

McKesson · $3.86B total across 2 segments · Q2 2023

  • Medical-Surgical Solutions
    $2.84B-9.0%
  • Prescription Technology Solutions
    $1.02B+9.2%

Forward guidance

McKesson raised fiscal 2023 Adjusted Earnings per Diluted Share guidance to $24.45 to $24.95 from the previous range of $23.95 to $24.65 to reflect operating business performance and increased contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and COVID-19 tests.

Tailwinds

  • U.S. government’s COVID-19 vaccine distribution program: $0.60 to $0.70
  • U.S. government’s kitting, storage, and distribution of ancillary supplies program and COVID-19 tests: $1.00 to $1.10
  • Fiscal 2023 Adjusted Earnings per Diluted Share guidance indicates 11% to 14% forecasted growth compared to prior year, excluding the impacts of the above items from both fiscal 2023 guidance and fiscal 2022 results.
  • McKesson signed an agreement in principle to extend its pharmaceutical distribution partnership with CVS Health through June 2027.
  • McKesson continues to expand its differentiated oncology and biopharma businesses, further demonstrating meaningful progress against its company priorities.

Headwinds

  • Net gains and losses associated with McKesson Ventures’ equity investments: Approximately ($0.15)
  • Second-quarter Adjusted Earnings per Diluted Share was $6.06 compared to $6.15 a year ago, a decrease of 1%, driven by prior year net gains from McKesson Ventures' equity investments and lower contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and COVID-19 tests, partially offset by a lower share count.
  • Second-quarter Adjusted Earnings per Diluted Share included pre-tax net losses of approximately $3 million associated with McKesson Ventures' equity investments, compared to pre-tax net gains of approximately $97 million in the second-quarter of fiscal 2022.
  • Second-quarter revenues for Medical-Surgical Solutions Segment decreased by 9%, driven by lower sales of COVID-19 tests, partially offset by growth in the primary care business.
  • Second-quarter revenues for International Segment decreased by 25%, driven by the divestitures of McKesson's UK and Austrian businesses.

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 2023

Historical avgQ2 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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