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Jun 30, 2021

McKesson Q1 2022 Earnings Report

McKesson delivered record first-quarter earnings, marking solid performance across all four operating segments. The company evolved its portfolio to drive long-term growth and create shareholder value.

Key Takeaways

McKesson Corporation reported a strong first quarter with total revenues increasing by 13% to $62.7 billion and adjusted earnings per diluted share increasing by 101% to $5.56. The company is raising its fiscal 2022 adjusted EPS guidance based on this performance.

Total revenues increased 13% year-over-year to $62.7 billion.

Earnings per diluted share from continuing operations increased 14% to $3.09.

Adjusted Earnings per diluted share increased 101% to $5.56.

The Board of Directors increased the quarterly dividend by 12% to $0.47 per share.

Total Revenue
$62.7B
Previous year: $55.7B
+12.6%
EPS
$5.56
Previous year: $2.77
+100.7%
Gross Profit
$3.03B
Previous year: $2.7B
+12.3%
Cash and Equivalents
$2.42B
Previous year: $2.61B
-7.3%
Free Cash Flow
-$1.8B
Previous year: -$1.2B
+50.0%
Total Assets
$62.9B
Previous year: $57.7B
+9.1%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson raised fiscal 2022 Adjusted Earnings per diluted share guidance to $19.80 to $20.40 from the previous range of $18.85 to $19.45 to reflect strong first-quarter operating performance and increased contribution from the U.S. government's COVID-19 vaccine distribution and kitting programs.

Positive Outlook

  • Strong first-quarter operating performance
  • Increased contribution from the U.S. government's COVID-19 vaccine distribution programs
  • Increased contribution from kitting programs

Challenges Ahead

  • Guidance assumes $0.45 to $0.55 related to U.S. government COVID-19 vaccine distribution
  • Guidance does not assume any contribution from COVID-19 vaccines designated for pediatric patients or booster shots
  • Guidance assumes $0.35 to $0.45 related to the kitting and distribution of ancillary supplies

Revenue & Expenses

Visualization of income flow from segment revenue to net income