McKesson Earnings: Here’s Why Shares are Up Now

McKesson Corporation (NYSE:MCK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.1%.

McKesson Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.55% to $2.07 in the quarter versus EPS of $1.55 in the year-earlier quarter.

Revenue: Rose 4.58% to $32.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: McKesson Corporation reported adjusted EPS income of $2.07 per share. By that measure, the company beat the mean analyst estimate of $1.71. It missed the average revenue estimate of $32.6 billion.

Quoting Management: “McKesson is off to an excellent start in Fiscal 2014, with strong execution from both Distribution Solutions and Technology Solutions driving earnings growth,” said John H. Hammergren, chairman and chief executive officer. “Based on the momentum from our first-quarter results and our confidence in the full year, we are raising our previous outlook for the fiscal year and now expect Adjusted Earnings per diluted share from continuing operations of $8.05 to $8.35 for the fiscal year ending March 31, 2014.”

Key Stats (on next page)…

Revenue increased 5.19% from $30.62 billion in the previous quarter. EPS increased 42.76% from $1.45 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 $2.06 to a profit $2.07. For the current year, the average estimate has moved up from a profit of $8.07 to a profit of $8.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]