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McKesson
🇺🇸 NYSE:MCK
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Jun 30, 2022

McKesson Q1 2023 Earnings Report

Reported a solid start to fiscal year 2023 with revenue increase and raised adjusted earnings per diluted share guidance.

Key Takeaways

McKesson Corporation reported a 7% increase in total revenues to $67.2 billion and a 5% increase in Adjusted Earnings per Diluted Share to $5.83. The company raised its fiscal 2023 Adjusted Earnings per Diluted Share guidance to $23.95 to $24.65.

Total revenues increased by 7% to $67.2 billion.

Earnings per diluted share from continuing operations increased by $2.16 to $5.25.

Adjusted Earnings per Diluted Share increased by 5% to $5.83.

Fiscal 2023 Adjusted Earnings per Diluted Share guidance increased to $23.95 to $24.65.

Total Revenue
$67.2B
Previous year: $62.7B
+7.1%
EPS
$5.83
Previous year: $5.56
+4.9%
Gross Profit
$3.02B
Previous year: $3.03B
-0.3%
Cash and Equivalents
$2.23B
Previous year: $2.42B
-7.8%
Free Cash Flow
-$1.04B
Previous year: -$1.8B
-42.2%
Total Assets
$62.3B
Previous year: $62.9B
-1.0%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson raised fiscal 2023 Adjusted Earnings per Diluted Share guidance to $23.95 to $24.65 to reflect first-quarter operating performance and increased contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and COVID-19 tests.

Positive Outlook

  • $0.35 to $0.45 related to the U.S. government’s COVID-19 vaccine distribution program
  • $0.75 to $0.95 related to the U.S. government’s kitting, storage, and distribution of ancillary supplies program and COVID-19 tests
  • Fiscal 2023 Adjusted Earnings per Diluted Share guidance continues to assume approximately $3.5 billion of share repurchases.
  • The vaccine distribution contract has been extended through July 2023
  • The kitting, storage, and distribution of ancillary supplies contract has been extended through January 2023.

Challenges Ahead

  • ($0.11) related to year-to-date net gains and losses associated with McKesson Ventures’ equity investments
  • lower revenues in the International segment as a result of the planned progress with McKesson's divestiture of its European businesses
  • higher tax rate and lower contribution from COVID-19 vaccine distribution, kitting, and storage programs with the U.S. government.
  • the divestitures of McKesson’s Austrian and UK businesses
  • lower sales of COVID-19 tests and lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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