McKesson Earnings: What Investors Should Watch

McKesson (NYSE:MCK) will report earnings after markets close on Thursday, July 25th. 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 $1.71 per share on revenues of $32.60 billion. Currently, the company’s P/E ratio stands at 21.19.

Analyst Trends:

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 is a profit of $8.08, which is the same as the estimate ninety days ago.

Earnings Trends:

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

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 106,632 108,702 112,084 122,734 122,455
Diluted EPS ($) 2.95 4.62 4.57 5.59 5.60

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

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 30,798.00 29,850.00 31,187.00 30,620.00
Diluted EPS ($) 1.58 1.67 1.24 1.10

Past Performance:
Mckesson has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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