NYSE$MCK

McKesson Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth-quarter and full-year results for fiscal year 2021.

McKesson's fourth-quarter revenues increased by 1% to $59.1 billion, driven by market growth and higher volumes from retail national account customers in the U.S. Pharmaceutical segment. The company's adjusted EPS increased by 18% to $5.05, primarily driven by COVID-19 vaccine distribution and kitting programs.

  • Fourth-quarter total revenues of $59.1 billion increased 1%.
  • Full-year total revenues of $238.2 billion increased 3%.
  • Fourth-quarter Adjusted Earnings per diluted share of $5.05 increased 18%.
  • Full-year Free Cash Flow of $3.9 billion.

Headline financials

Total Revenue

$59.1B

Previous: $58.5B+1.0%
EPS (adj)

$5.05

Previous: $4.27+18.3%
Capital Expenditures

$158M

Previous: $120M+31.7%
Free Cash Flow

$3.9B

Previous: $3.87B+0.8%
Net Income

$713M

Previous: $1.08B-33.9%
Operating Income

$1.01B

Previous: $869M+16.2%
Gross Profit

$3.3B

Previous: $3.34B-1.2%
Cash & Equivalents

$6.28B

Previous: $4.02B+56.4%
Total Assets

$65B

Previous: $61.2B+6.2%

Revenue & EPS history

McKesson · Revenue · Quarterly

$59.1B

Q4 2021+1%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

McKesson · $3.5B total across 2 segments · Q4 2021

  • Medical-Surgical Solutions
    $2.71B+22.9%
  • Prescription Technology Solutions
    $789M

Forward guidance

McKesson expects full-year fiscal 2022 Adjusted Earnings per diluted share of $18.85 to $19.45, which reflects Adjusted Operating Profit growth in all segments coupled with disciplined, efficient capital deployment, including approximately $2 billion of share repurchases.

Tailwinds

  • Adjusted Operating Profit growth in all segments
  • Disciplined, efficient capital deployment
  • Approximately $2 billion of share repurchases
  • Adjusted Earnings per diluted share guidance range of $18.85 to $19.45
  • 3% to 6% growth in Revenues

Headwinds

  • Guidance assumes $0.50 to $0.70 of Adjusted Earnings per diluted share related to the U.S. government’s COVID-19 vaccine distribution and kitting programs
  • Risks and uncertainties such as those described in the Cautionary Statements
  • Changes in pricing and reimbursement models
  • Changes or disruptions in product supply
  • Difficulties in sourcing products and changes in pricing due to the effects of the COVID-19 pandemic on supply chains

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 Q4 2021

Historical avgQ4 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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