McKesson Earnings Preview: Get Ahead of the Analysts

McKesson (NYSE:MCK) will report earnings after markets close on Tuesday, May 7th. McKesson Corporation distributes pharmaceuticals, medical-surgical supplies, and and health and beauty care products throughout North America. The Company also develops, implements, and supports software that facilitates the integration of data throughout the health enterprise. In addition, McKesson offers analytic, care management, and patient solutions for payers.

Here is your Cheat Sheet to Mckesson Earnings:

Earnings Expectations: Analysts expect earnings of $2.31 per share on revenues of $32.01 billion. Currently, the company’s P/E ratio stands at 16.03.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.69 to a profit $1.66. For the current year, the average estimate is a profit of $7.21, which is worse than the estimate ninety days ago.

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Earnings Trends:

Here’s how Mckesson has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 101,700 106,630 108,700 112,080 122,730
Diluted EPS ($) 3.32 2.95 4.62 4.57 5.59

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 30,840 31,700 30,800 29,850 31,190
Diluted EPS ($) 1.20 2.101 1.58 1.67 1.24

Past Performance:
Mckesson has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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