NYSE$MCK

McKesson Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

McKesson reported third-quarter results with revenue growth and increased adjusted earnings per share.

McKesson reported a 6% increase in third-quarter revenues, reaching $62.6 billion. Adjusted earnings per diluted share rose by 21% to $4.60. The company recorded a pre-tax charge of $8.1 billion related to opioid litigation, resulting in a Loss per diluted share of $(39.03).

  • Total revenues reached $62.6 billion, a 6% increase year-over-year.
  • Loss per diluted share was $(39.03), impacted by an $8.1 billion pre-tax charge related to opioid litigation.
  • Adjusted Earnings per diluted share increased by 21% to $4.60.
  • The Board of Directors authorized an additional $2.0 billion share repurchase program.

Headline financials

Total Revenue

$62.6B

Previous: $59.2B+5.8%
EPS (adj)

$4.60

Previous: $3.81+20.7%
Capital Expenditures

-$293M

Previous: -$242M-21.1%
Free Cash Flow

-$6.52B

Previous: -$56M-11541.1%
Net Income

-$6.23B

Previous: $186M-3447.3%
Operating Income

-$7.36B

Previous: $360M-2145.0%
Gross Profit

$3.15B

Previous: $3.03B+3.9%
Cash & Equivalents

$3.58B

Previous: $2.07B+73.2%
Total Assets

$61.8B

Previous: $60.9B+1.6%

Revenue & EPS history

McKesson · Revenue · Quarterly

$62.6B

Q3 2021+5.8%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

McKesson · $3.83B total across 2 segments · Q3 2021

  • Medical-Surgical Solutions
    $3.05B+42.6%
  • Prescription Technology Solutions
    $777M+8.8%

Forward guidance

McKesson raised and narrowed fiscal 2021 Adjusted Earnings per diluted share guidance to $16.95 to $17.25 from the previous range of $16.00 to $16.50 to primarily reflect improved growth in the business and the contribution from McKesson’s successful distribution of COVID-19 vaccines and ancillary supplies.

Tailwinds

  • Improved growth in the business.
  • Contribution from McKesson’s successful distribution of COVID-19 vaccines and ancillary supplies.
  • Expect Adjusted Earnings per diluted share of $16.95 to $17.25.
  • COVID-19 vaccine distribution is expected to contribute $0.25 to $0.35.
  • Kitting and distribution of ancillary supplies for COVID-19 vaccines is expected to contribute $0.20 to $0.30.

Headwinds

  • Overall environment remains challenging due to the sustained impact of the COVID-19 pandemic.
  • A full recovery of pharmaceutical prescription volumes and patient visits will not occur this fiscal year.
  • Opioid-related claims of governmental entities resulted in a pre-tax charge of $8.1 billion.
  • Long-lived asset impairment charge of $115 million primarily related to McKesson’s retail pharmacy businesses in the International segment.
  • Higher tax rate and the lapping of the prior year contribution from the company's now separated investment in Change Healthcare LLC

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 Q3 2021

Historical avgQ3 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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