McKesson (NYSE:MCK) Issues Q2 Earnings Guidance

McKesson (NYSE:MCK) issued an update on its second quarter earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of $6.70-$7.00 for the period, compared to the consensus estimate of $7.39. McKesson also updated its FY25 guidance to $31.75-$32.55 EPS.

McKesson Trading Down 2.1 %

Shares of McKesson stock opened at $504.17 on Friday. The company has a fifty day moving average price of $574.75 and a 200 day moving average price of $557.64. McKesson has a twelve month low of $412.64 and a twelve month high of $637.51. The stock has a market cap of $65.51 billion, a price-to-earnings ratio of 22.53, a price-to-earnings-growth ratio of 1.29 and a beta of 0.44.

McKesson (NYSE:MCK) last released its quarterly earnings results on Wednesday, August 7th. The company reported $7.88 earnings per share for the quarter, topping analysts’ consensus estimates of $7.21 by $0.67. The firm had revenue of $79.28 billion during the quarter, compared to analysts’ expectations of $82.53 billion. McKesson had a negative return on equity of 242.57% and a net margin of 0.94%. McKesson’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $7.27 EPS. Analysts forecast that McKesson will post 32.14 earnings per share for the current year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 1st. Investors of record on Monday, September 2nd will be paid a dividend of $0.71 per share. This is an increase from McKesson’s previous quarterly dividend of $0.62. The ex-dividend date of this dividend is Friday, August 30th. This represents a $2.84 annualized dividend and a yield of 0.56%. McKesson’s payout ratio is 12.69%.

Analysts Set New Price Targets

MCK has been the subject of several recent analyst reports. Argus raised their target price on McKesson from $570.00 to $670.00 and gave the company a buy rating in a research note on Monday, June 24th. Barclays raised their price objective on McKesson from $596.00 to $616.00 and gave the company an overweight rating in a research note on Thursday, August 8th. Bank of America upped their target price on McKesson from $590.00 to $670.00 and gave the company a buy rating in a research report on Tuesday, June 25th. Citigroup lifted their price target on shares of McKesson from $620.00 to $670.00 and gave the stock a buy rating in a research note on Friday, July 19th. Finally, Leerink Partners dropped their target price on shares of McKesson from $670.00 to $665.00 and set an outperform rating for the company in a research report on Thursday. Two equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $624.93.

Insiders Place Their Bets

In related news, CEO Brian S. Tyler sold 3,753 shares of the business’s stock in a transaction that occurred on Thursday, September 5th. The stock was sold at an average price of $561.10, for a total transaction of $2,105,808.30. Following the completion of the transaction, the chief executive officer now owns 78,586 shares in the company, valued at approximately $44,094,604.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, EVP Leann B. Smith sold 600 shares of McKesson stock in a transaction that occurred on Tuesday, June 11th. The stock was sold at an average price of $585.53, for a total transaction of $351,318.00. Following the sale, the executive vice president now owns 2,022 shares of the company’s stock, valued at $1,183,941.66. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Brian S. Tyler sold 3,753 shares of the stock in a transaction that occurred on Thursday, September 5th. The stock was sold at an average price of $561.10, for a total value of $2,105,808.30. Following the completion of the transaction, the chief executive officer now directly owns 78,586 shares of the company’s stock, valued at $44,094,604.60. The disclosure for this sale can be found here. Insiders have sold 11,859 shares of company stock valued at $6,986,810 over the last quarter. Insiders own 0.11% of the company’s stock.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.