NEW YORK (TheStreet) -- Shares of McKesson (MCK) - Get Report closed up 3.83% to $183.34 in Wednesday's trading session after lifting its per-share earnings outlook for the fiscal year ending March 31, 2017.
The San Francisco-based health-care giant now expects to report annual earnings between $13.43 and $13.93 per share, up from its previous forecast of between $13.30 and $13.80 per share.
McKesson's revised outlook reflects its early adoption of new rules to account for stock-based compensation in financial reports.
Additionally, the company announced yesterday that it will combine the majority of its technology segment with most of Change Healthcare's business, which is primarily owned by Blackstone Group (BX), into a new company. McKesson would own 70% of the company and Change Healthcare's shareholders would own the remainder.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
McKesson's strengths such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: MCK
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 article's author.