McKesson (NYSE:MCK) Releases Earnings Results, Misses Expectations By $0.16 EPS

McKesson (NYSE:MCK) announced its quarterly earnings data on Tuesday. The company reported $6.18 EPS for the quarter, missing analysts’ consensus estimates of $6.34 by ($0.16), Briefing.com reports. The firm had revenue of $76.36 billion during the quarter, compared to analyst estimates of $79.32 billion. McKesson had a negative return on equity of 262.63% and a net margin of 0.99%. McKesson’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $7.19 earnings per share. McKesson updated its FY25 guidance to $31.25-$32.05 EPS.

McKesson Stock Performance

NYSE MCK traded up $8.38 during trading on Thursday, hitting $551.99. The stock had a trading volume of 221,739 shares, compared to its average volume of 707,240. The company has a market capitalization of $72.54 billion, a PE ratio of 24.61, a P/E/G ratio of 1.41 and a beta of 0.45. McKesson has a 12 month low of $373.28 and a 12 month high of $566.01. The company’s 50-day moving average price is $531.17 and its two-hundred day moving average price is $493.81.

McKesson Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Monday, June 3rd will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, May 31st. This represents a $2.48 dividend on an annualized basis and a dividend yield of 0.45%. McKesson’s payout ratio is presently 11.24%.

Insider Activity

In other news, CEO Brian S. Tyler sold 3,473 shares of the firm’s stock in a transaction dated Friday, March 15th. The stock was sold at an average price of $524.55, for a total value of $1,821,762.15. Following the completion of the transaction, the chief executive officer now owns 43,445 shares in the company, valued at approximately $22,789,074.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, CEO Brian S. Tyler sold 3,473 shares of the business’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the transaction, the chief executive officer now directly owns 43,445 shares in the company, valued at $22,789,074.75. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Leann B. Smith sold 186 shares of McKesson stock in a transaction dated Tuesday, February 13th. The shares were sold at an average price of $496.00, for a total transaction of $92,256.00. Following the completion of the transaction, the executive vice president now directly owns 1,511 shares of the company’s stock, valued at approximately $749,456. The disclosure for this sale can be found here. 0.21% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of analysts have commented on MCK shares. Mizuho lifted their target price on shares of McKesson from $450.00 to $505.00 and gave the stock a “neutral” rating in a report on Friday, February 9th. SVB Leerink assumed coverage on McKesson in a report on Monday, February 26th. They issued an “outperform” rating and a $600.00 price objective for the company. TD Cowen raised their target price on McKesson from $563.00 to $652.00 and gave the stock a “buy” rating in a report on Wednesday. Citigroup increased their price target on shares of McKesson from $575.00 to $620.00 and gave the company a “buy” rating in a research report on Tuesday, April 30th. Finally, Evercore ISI increased their target price on shares of McKesson from $590.00 to $600.00 and gave the stock an “outperform” rating in a report on Wednesday. Two equities research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, McKesson has an average rating of “Moderate Buy” and an average target price of $569.86.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.