McKesson Earnings: Here’s Why Shares are Dipping Now

McKesson Corporation (NYSE:MCK) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.9%.

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McKesson Corporation Earnings Cheat Sheet

Results: Net income decreased -0.67% to $298 million ($1.41 per diluted share) in the quarter versus a net gain of $300 million in the year-earlier quarter.

Revenue: Rose 1.13% to $31.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: McKesson Corporation reported adjusted net income of $1.41 per share. By that measure, the company missed the mean analyst estimate of $1.63. It beat the average revenue estimate of $30.81 billion.

Quoting Management: “Our full year view of the operating performance in our Distribution Solutions segment is now better than our original expectations, and our full year view of the operating performance in the primary businesses in Technology Solution remains unchanged,” said John H. Hammergren, chairman and chief executive officer. “This operating strength is offset by the charge in our Canadian business and revenue deferral in our international technology business, and as a result we are updating our previous outlook for the fiscal year and now expect Adjusted Earnings per diluted share of $7.10 to $7.30 for the fiscal year ending March 31, 2013.”

Key Stats:

Revenue increased 4.48% from $29.85 billion in the previous quarter. Net income decreased 25.69% from $401 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.2 to a profit $2.21. For the current year, the average estimate has moved up from a profit of $7.29 to a profit of $7.3 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)