NEW YORK (TheStreet) -- Shares of McKesson (MCK) - Get Report were diving 24.90% to $120.54 on heavy trading volume Friday morning after the company posted weaker-than-anticipated results for the 2017 fiscal second quarter and reduced its full-year forecast.
After yesterday's closing bell, the San Francisco-based pharmaceutical distributor reported adjusted earnings of $2.94 per diluted share on revenue of $49.96 billion.
Analysts surveyed by FactSet were looking for adjusted earnings of $3.04 per share on revenue of $51.21 billion.
The company said results were impacted by a "softer pricing environment" in its U.S. pharmaceutical business.
For fiscal 2017, McKesson now sees earnings per share between $12.35 and $12.85. Analysts are projecting earnings of $13.06 per share, according to FactSet.
Previously, the company guided full-year earnings per share between $13.43 and $13.93.
"Our updated outlook...reflects McKesson's expectation of a lower profit contribution resulting from recent customer pricing activities and lower operating profit as a result of further moderating branded pharmaceutical pricing trends compared to previous expectations," CEO John Hammergren said in a statement.
McKesson also announced a $4 billion stock buyback authorization.
Additionally, the stock was downgraded by several firms today, including Leerink, Deutsche Bank and Baird.
More than 9.24 million of the company's shares changed hands so far this morning, well above its average 30-day volume of 1.65 million shares.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MCK