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

McKesson (NYSE:MCK) released its quarterly earnings results on Tuesday. The company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.34 by ($0.16), Briefing.com reports. The firm had revenue of $76.36 billion for the quarter, compared to the consensus estimate of $79.32 billion. McKesson had a negative return on equity of 262.63% and a net margin of 0.99%. The firm’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 posted $7.19 EPS. McKesson updated its FY25 guidance to $31.25-$32.05 EPS.

McKesson Stock Down 0.1 %

Shares of MCK traded down $0.55 during trading hours on Wednesday, reaching $545.20. 799,422 shares of the company traded hands, compared to its average volume of 706,458. The business has a fifty day moving average price of $531.17 and a 200-day moving average price of $493.81. McKesson has a 12-month low of $373.28 and a 12-month high of $566.01. The stock has a market capitalization of $71.64 billion, a P/E ratio of 24.75, a P/E/G ratio of 1.41 and a beta of 0.45.

McKesson Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on MCK shares. Citigroup lifted their price objective on shares of McKesson from $575.00 to $620.00 and gave the company a “buy” rating in a research note on Tuesday, April 30th. Evercore ISI boosted their price objective on shares of McKesson from $590.00 to $600.00 and gave the stock an “outperform” rating in a report on Wednesday. Mizuho raised 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. Robert W. Baird lifted their price objective on McKesson from $603.00 to $671.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, Morgan Stanley raised their price objective on shares of McKesson from $522.00 to $548.00 and gave the company an “overweight” rating in a research note on Monday, April 15th. Two equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, McKesson has a consensus rating of “Moderate Buy” and an average price target of $559.29.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 3,473 shares of the company’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $524.55, for a total value of $1,821,762.15. Following the sale, the chief executive officer now directly owns 43,445 shares of the company’s stock, valued at $22,789,074.75. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In other news, CEO Brian S. Tyler sold 3,473 shares of the business’s stock in a transaction dated 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 completion of the sale, the chief executive officer now owns 43,445 shares of the company’s stock, valued at $22,789,074.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Leann B. Smith sold 186 shares of the stock in a transaction that occurred on Tuesday, February 13th. The shares were sold at an average price of $496.00, for a total value of $92,256.00. Following 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. Corporate insiders own 0.21% of the company’s stock.

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.