NYSE$MCK

McKesson Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

McKesson delivered solid results, driven by growth in North American businesses and commitment to company priorities and growth strategies. The company raised full year guidance.

McKesson Corporation reported a 15% increase in third quarter revenues to $80.9 billion. Earnings per diluted share decreased to $4.42, while adjusted earnings per diluted share increased by 12% to $7.74. The company raised its full year adjusted earnings per diluted share guidance to $27.25 to $27.65.

  • Consolidated revenues increased by 15% to $80.9 billion.
  • Earnings per diluted share decreased by $3.23 to $4.42.
  • Adjusted Earnings per Diluted Share increased 12% to $7.74.
  • Full year Adjusted Earnings per Diluted Share guidance range raised to $27.25 to $27.65.

Headline financials

Total Revenue

$80.9B

Previous: $70.5B+14.8%
EPS

$4.42

Previous: $6.90-35.9%
Dividends Declared Per Common Share

$0.62

No prior period
Prescription Tech Solutions Adj. Op. Profit

$193M

No prior period
Medical-Surgical Solutions Adj. Op. Profit

$282M

No prior period
Capital Expenditures

-$243M

Previous: -$265M+8.3%
Free Cash Flow

$346M

Previous: $814M-57.5%
Net Income

$589M

Previous: $1.08B-45.4%
Operating Income

$642M

Previous: $1.24B-48.3%
Gross Profit

$3.15B

Previous: $3.17B-0.7%
Cash & Equivalents

$1.98B

Previous: $2.77B-28.6%
Total Assets

$66.5B

Previous: $62.7B+6.1%

Revenue & EPS history

McKesson · Revenue · Quarterly

$80.9B

Q3 2024+14.8%vs Q3 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

McKesson · $3.97B total across 2 segments · Q2 2024

  • Medical-Surgical Solutions
    $2.83B-0.3%
  • Prescription Technology Solutions
    $1.14B+12.0%

Forward guidance

McKesson is raising fiscal 2024 Adjusted Earnings per Diluted Share guidance to $27.25 to $27.65 from the previous range of $26.80 to $27.40 to reflect solid operating performance, which reflects a growth rate of 5% to 7%.

Tailwinds

  • Solid operating performance
  • Growth rate of 5% to 7% is expected
  • Adjusted Earnings per Diluted Share guidance raised
  • Reflects dedication to company priorities
  • Reflects dedication to growth strategies

Headwinds

  • Includes approximately ($0.15) related to year-to-date losses associated with McKesson Ventures' equity investments.
  • McKesson cannot reasonably forecast LIFO inventory-related adjustments
  • McKesson cannot reasonably forecast certain litigation loss and gain contingencies
  • McKesson cannot reasonably forecast restructuring, impairment and related charges
  • McKesson cannot reasonably forecast other adjustments, which are difficult to predict and estimate.

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 2024

Historical avgQ3 2024

+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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