McKesson Corporation Set to Report Q3 Earnings Amid Strong Market Performance
With a market cap of $74.3 billion, Irving, Texas-based McKesson Corporation (MCK) is a key player in global healthcare services and information technology. The company operates through four main segments: U.S. Pharmaceutical; Prescription Technology Solutions (RxTS); Medical-Surgical Solutions; and International. These divisions work together to provide comprehensive distribution, technology, and strategic solutions aimed at improving patient care and healthcare operations around the world. MCK is scheduled to announce its fiscal Q3 earnings results after the market closes on Wednesday, February 5.
Analysts Anticipate Positive Earnings Growth
In anticipation of the earnings report, analysts expect the prescription drug distributor to show a profit of $8.28 per share, reflecting nearly a 7% increase from $7.74 per share in the same quarter last year. Notably, McKesson has outperformed Wall Street’s expectations in three of the past four quarters, though it fell short once. In the last reported quarter, MCK exceeded the consensus EPS estimate by 2.6%.
Future Earnings Projections Look Promising
For fiscal 2025, analysts predict MCK will report an EPS of $32.73, marking a 19.3% rise from $27.44 in fiscal 2024. Looking ahead to fiscal 2026, its EPS is expected to climb roughly 12% year-over-year to $36.65.
Strong Stock Performance Against the Market
MCK has yielded a 22.3% return over the past 52 weeks, surpassing the broader S&P 500 Index’s ($SPX) 22.1% rise and outpacing the marginal decline in the Health Care Select Sector SPDR Fund’s (XLV) performance during the same timeframe.
Recent Earnings Report Boosts Investor Confidence
McKesson shares surged 10.6% following its Q2 earnings report on November 6, where the company exceeded analysts’ expectations. It reported an adjusted EPS of $7.07 and revenue of $93.7 billion. Key contributors to this growth included increased performance in the U.S. Pharmaceutical segment, particularly with specialty products and GLP-1 medications, alongside positive contributions from Prescription Technology Solutions and Medical-Surgical Solutions. Additionally, McKesson raised its fiscal 2025 adjusted EPS guidance to a range of $32.40 to $33, further strengthening investor confidence.
Analysts Remain Optimistic on McKesson Stock
Currently, analysts have a bullish outlook on McKesson stock, with a consensus “Strong Buy” rating. Out of 16 analysts monitoring the stock, 13 recommend “Strong Buys” while three suggest “Holds.” This sentiment reflects a more positive shift compared to three months ago, when only 10 analysts suggested a “Strong Buy.”
As of this writing, MCK is trading below the average analyst price target of $670.07.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
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