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Jun 30, 2023

McKesson Q1 2024 Earnings Report

McKesson's Q1 2024 performance was marked by revenue growth, increased earnings per share, and strategic capital allocation decisions.

Key Takeaways

McKesson Corporation reported strong first-quarter results for fiscal year 2024, with an 11% increase in total revenues, a significant rise in earnings per diluted share, and a raised guidance range for fiscal 2024 Adjusted Earnings per Diluted Share.

Total revenues increased by 11% to $74.5 billion.

Earnings per diluted share from continuing operations rose to $7.02, an increase of $1.77.

Adjusted Earnings per Diluted Share increased by 25% to $7.27.

The Board of Directors approved a $6.0 billion increase to the share repurchase program and a 15% increase to the quarterly dividend.

Total Revenue
$74.5B
Previous year: $67.2B
+10.9%
EPS
$7.27
Previous year: $5.83
+24.7%
Gross Profit
$3.02B
Previous year: $3.02B
+-0.0%
Cash and Equivalents
$2.64B
Previous year: $2.23B
+18.0%
Free Cash Flow
-$1.2B
Previous year: -$1.04B
+15.3%
Total Assets
$64.1B
Previous year: $62.3B
+2.9%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson is raising its fiscal 2024 Adjusted Earnings per Diluted Share guidance to $26.55 to $27.35, reflecting strong first-quarter performance and outlook in the North American businesses.

Positive Outlook

  • Strong first quarter performance.
  • Positive outlook in the North American businesses.
  • Increased fiscal 2024 Adjusted Earnings per Diluted Share guidance range.
  • Guidance reflects strong performance.
  • Company is confident in ability to deliver sustainable growth

Challenges Ahead

  • Fiscal 2024 Adjusted Earnings per Diluted Share guidance includes ($0.04) related to year-to-date losses associated with McKesson Ventures' equity investments.
  • Company does not forecast GAAP earnings per diluted share from continuing operations.
  • Company cannot reliably forecast LIFO inventory-related adjustments.
  • Company cannot reliably forecast certain litigation loss and gain contingencies.
  • Company cannot reliably forecast restructuring, impairment and related charges, and other adjustments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income