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Jun 30, 2020
McKesson Q1 2021 Earnings Report
McKesson's financial performance was flat year-over-year, but earnings per share increased. The company raised its fiscal year 2021 adjusted earnings per diluted share guidance.
Key Takeaways
McKesson reported flat revenues year-over-year at $55.7 billion. However, earnings per diluted share increased by 20% to $2.72. Adjusted earnings per diluted share decreased by 16% to $2.77. The company raised its fiscal year 2021 adjusted earnings per diluted share guidance to a range of $14.70 to $15.50.
Total revenues were flat year-over-year at $55.7 billion.
Earnings per diluted share increased 20% to $2.72.
Adjusted Earnings per diluted share decreased 16% to $2.77.
Fiscal 2021 Adjusted Earnings per diluted share guidance range increased to $14.70 to $15.50.
McKesson
McKesson
McKesson Revenue by Segment
Revenue by Segment
U.S. Pharmaceutical Revenue
CapyFin.comMedical-Surgical Solutions Revenue
CapyFin.com Forward Guidance
McKesson raised its fiscal 2021 Adjusted Earnings per diluted share guidance to $14.70 to $15.50 from the previous range of $13.95 to $14.75, reflecting earlier improvement in volumes relative to original expectations. The company continues to expect Adjusted Earnings per diluted share growth in the second half of fiscal 2021.
Positive Outlook
- Volumes across the business improved earlier than anticipated.
- Increased fiscal 2021 Adjusted Earnings per diluted share guidance range to $14.70 to $15.50.
- Strong execution of employees around the world
- Commitment to returning cash to shareholders and confidence in its outlook
- Continue to expect Adjusted Earnings per diluted share growth in the second half of fiscal 2021
Challenges Ahead
- Lower prescription volumes
- Lower primary care patient visits across the enterprise
- Branded to generic conversions
- Lapping of the prior year contribution from the company’s now separated investment in Change Healthcare LLC
- Declines in primary care patient visits
Revenue & Expenses
Visualization of income flow from segment revenue to net income