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McKesson Rises on Second-Quarter Earnings Beat

McKesson shares were higher after the health-care supplier beat Wall Street's second-quarter-earnings forecasts.

McKesson  (MCK) - Get McKesson Corporation Report was climbing Tuesday after the health-care supplier beat Wall Street's second-quarter-earnings forecasts.

Shares of the Irving, Texas, company at last check were up 2.2% to $155.41.

For the quarter ended Sept. 30, McKesson reported earnings of $627 million, or $3.54 per share, compared with a loss of $677 million, or $3.99, in the year-earlier period. 

Adjusted earnings came to $4.80 a share, while analysts surveyed by FactSet had expected $3.87.

Revenue totaled $60.8 billion, up 6% from a year and ahead of the FactSet consensus estimate of $59.4 billion. 

The revenue increase was driven by growth in the U.S. pharmaceutical segment, the company said, due in part to higher volumes from retail national account customers.

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Revenue in the U.S. pharma segment was $48.1 billion, up 5% from a year earlier.

Second-quarter revenue in the medical-surgical-solutions segment jumped 23% to $2.5 billion, driven by demand for covid-19 tests and personal protective equipment in the primary care and extended care businesses.

McKesson also updated its guidance range for adjusted earnings per share of $16 to $16.50 in 2021, up from a previous range of $14.70 to $15.50.

"Our strong second-quarter earnings results reflect the breadth of McKesson’s differentiated portfolio and further improvement in volumes across the business," Chief Executive Brian Tyler said in a statement. 

"At the same time, we continue to invest into the business to support our long-term growth strategies."

In August, McKesson said it expanded its partnership with the Centers for Disease Control and Prevention. McKesson backs the U.S. government’s Operation Warp Speed as a centralized distributor of future covid-19 vaccines and ancillary supplies needed to administer vaccinations.