Inside McKesson Corp’s Upcoming First Quarter Earnings Release

S&P 500 (NYSE:SPY) component McKesson Corp (NYSE:MCK) will unveil its latest earnings on Thursday, July 28, 2011. McKesson Corporation delivers cost-reducing medicines, pharmaceutical supplies, information and care management products and services.

McKesson Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.14 per share, a rise of 3.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.21. Between one and three months ago, the average estimate moved down and dropped from $1.15 during the last month. For the year, analysts are projecting net income of $6.10 per share, a rise of 24.5% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 6 cents, reporting profit of $1.66 per share against a mean estimate of net income of $1.60. In the third quarter of the last fiscal year, the company exceeded forecasts by one cent with profit of $1.12 versus a mean estimate of net income of $1.11.

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Wall St. Revenue Expectations: On average, analysts predict $29.04 billion in revenue this quarter, a rise of 5.8% from the year ago quarter. Analysts are forecasting total revenue of $117.77 billion for the year, a rise of 5.1% from last year’s revenue of $112.08 billion.

Analyst Ratings: Analysts are bullish on this stock with 15 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 4.8% over the past four quarters. The quarter hit the hardest was the third quarter of the last fiscal year, that saw a 52.5% drop.

Over the last four quarters, revenue has increased 3.2% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 8.3% from the year earlier quarter.

Competitors to Watch: AmerisourceBergen Corp. (NYSE:ABC), Cardinal Health, Inc. (NYSE:CAH), Henry Schein, Inc. (NASDAQ:HSIC), Patterson Companies, Inc. (NASDAQ:PDCO), Cerner Corporation (NASDAQ:CERN), Owens & Minor, Inc. (NYSE:OMI), Omnicare, Inc. (NYSE:OCR), Grupo Casa Saba, S.A. (NYSE:SAB), MWI Veterinary Supply, Inc. (NASDAQ:MWIV), and Allscripts Healthcare Solutions Inc (NASDAQ:MDRX).

Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had fallen $1.70 (-2%) from $84.01 to $82.31. The stock price saw one of its best stretches over the last year between April 18, 2011 and April 27, 2011 when shares rose for seven-straight days, rising 5.4% (+$4.30) over that span. It saw one of its worst periods between April 1, 2011 and April 12, 2011 when shares fell for eight-straight days, falling 2.7% (-$2.16) over that span. Shares are up $12.26 (+17.5%) year to date.

(Source: Xignite Financials)

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