Zacks: Analysts Expect McKesson Co. (NYSE:MCK) Will Post Quarterly Sales of $65.93 Billion

Wall Street brokerages expect McKesson Co. (NYSE:MCK) to announce $65.93 billion in sales for the current fiscal quarter, according to Zacks. Three analysts have provided estimates for McKesson’s earnings, with estimates ranging from $65.65 billion to $66.26 billion. McKesson posted sales of $62.60 billion in the same quarter last year, which suggests a positive year-over-year growth rate of 5.3%. The company is expected to issue its next quarterly earnings report on Tuesday, February 1st.

According to Zacks, analysts expect that McKesson will report full-year sales of $258.96 billion for the current financial year, with estimates ranging from $257.64 billion to $259.88 billion. For the next year, analysts expect that the company will report sales of $264.26 billion, with estimates ranging from $257.86 billion to $271.80 billion. Zacks Investment Research’s sales averages are an average based on a survey of research analysts that that provide coverage for McKesson.

McKesson (NYSE:MCK) last released its earnings results on Sunday, October 31st. The company reported $6.15 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $4.66 by $1.49. The company had revenue of $66.58 billion during the quarter, compared to analysts’ expectations of $63.23 billion. McKesson had a negative return on equity of 5,793.16% and a negative net margin of 1.92%. The business’s revenue was up 9.5% on a year-over-year basis. During the same period in the prior year, the business posted $4.80 EPS.

Several equities research analysts have weighed in on the company. Cowen increased their target price on McKesson from $247.00 to $268.00 and gave the stock an “outperform” rating in a research report on Friday, November 5th. Robert W. Baird increased their target price on McKesson from $254.00 to $260.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 2nd. Bank of America increased their target price on McKesson from $237.00 to $250.00 and gave the stock a “buy” rating in a research report on Tuesday, November 2nd. Credit Suisse Group increased their target price on McKesson from $224.00 to $230.00 and gave the stock a “neutral” rating in a research report on Monday, November 8th. Finally, Morgan Stanley increased their target price on McKesson from $226.00 to $240.00 and gave the stock an “overweight” rating in a research report on Friday, October 29th. Two investment analysts have rated the stock with a hold rating and ten have given a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $255.25.

In other news, CEO Brian S. Tyler sold 6,214 shares of McKesson stock in a transaction that occurred on Tuesday, November 2nd. The stock was sold at an average price of $220.00, for a total transaction of $1,367,080.00. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Britt J. Vitalone sold 22,085 shares of McKesson stock in a transaction that occurred on Monday, September 13th. The stock was sold at an average price of $203.75, for a total value of $4,499,818.75. Following the sale, the chief financial officer now directly owns 14,356 shares in the company, valued at approximately $2,925,035. The disclosure for this sale can be found here. Insiders sold a total of 73,876 shares of company stock worth $15,861,964 over the last three months. 0.28% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Nordea Investment Management AB raised its position in shares of McKesson by 140.7% during the third quarter. Nordea Investment Management AB now owns 5,863,806 shares of the company’s stock worth $1,210,701,000 after acquiring an additional 3,427,543 shares during the last quarter. Putnam Investments LLC grew its stake in McKesson by 486.4% in the third quarter. Putnam Investments LLC now owns 2,323,190 shares of the company’s stock valued at $463,198,000 after acquiring an additional 1,926,999 shares during the period. Amundi acquired a new position in McKesson in the second quarter valued at about $143,886,000. Border to Coast Pensions Partnership Ltd acquired a new position in shares of McKesson during the second quarter worth about $68,064,375,000. Finally, Laurion Capital Management LP boosted its position in shares of McKesson by 16,720.1% during the second quarter. Laurion Capital Management LP now owns 386,862 shares of the company’s stock worth $73,984,000 after buying an additional 384,562 shares during the period. Hedge funds and other institutional investors own 86.03% of the company’s stock.

Shares of MCK stock traded down $0.43 on Friday, hitting $226.02. 867,876 shares of the stock traded hands, compared to its average volume of 1,017,181. The company has a debt-to-equity ratio of 82.70, a current ratio of 0.99 and a quick ratio of 0.57. The company has a market capitalization of $34.51 billion, a PE ratio of -7.51, a PEG ratio of 1.10 and a beta of 0.79. McKesson has a 1-year low of $169.09 and a 1-year high of $229.13. The company’s fifty day moving average is $209.82 and its 200 day moving average is $201.51.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 3rd. Investors of record on Wednesday, December 1st will be paid a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.83%. The ex-dividend date is Tuesday, November 30th. McKesson’s payout ratio is -6.25%.

About McKesson

McKesson Corp. engages in the provision of supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. It operates through the following segments: U.S. Pharmaceutical; International; Medical-Surgical Solutions; and Prescription Technology Solutions (“RxTS“).

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Earnings History and Estimates for McKesson (NYSE:MCK)

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