McKesson Earnings Cheat Sheet: The Profit Streak Continues

S&P 500 (NYSE:SPY) component McKesson Corporation (NYSE:MCK) reported its results for the first quarter. McKesson Corporation delivers cost-reducing medicines, pharmaceutical supplies, information and care management products and services.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

McKesson Earnings Cheat Sheet for the First Quarter

Results: Net income for the drug wholesaler fell to $286 million ($1.13 per share) vs. $298 million ($1.10 per share) a year earlier. This is a decline of 4% from the year earlier quarter.

Revenue: Rose 9.3% to $30 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MCK reported adjusted net income of $1.27 per share. By that measure, the company beat the mean estimate of $1.14 per share. It beat the average revenue estimate of $29.04 billion.

Quoting Management: “I am pleased with McKesson’s strong first quarter financial results, which provide a solid foundation for the remainder of our fiscal year,” said John H. Hammergren, chairman and chief executive officer. “In addition, our continued strong cash flow allowed us to execute an accelerated share repurchase program. Due to the change in our estimated full-year tax rate, we are raising our previous outlook for the fiscal year and now expect Adjusted Earnings between $6.09 and $6.29 per diluted share for the fiscal year ending March31, 2012.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 6 cents in the fourth quarter of the last fiscal year and by one cent in the third quarter of the last fiscal year.

Net income has dropped 4.6% year over year on average across the last five quarters. Performance was hurt by a 52.5% decline in the third quarter of the last fiscal year from the year earlier quarter.

The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 8.3% to $28.85 billion from the year earlier quarter.

The company’s cost of sales rose 9.3% from a year earlier. Last quarter, cost of sales was 94.9% of revenue, similar to a year earlier.

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).

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)