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Sep 30, 2020

McKesson Q2 2021 Earnings Report

Reported an increase in revenue and adjusted earnings per share, driven by growth in the U.S. Pharmaceutical segment and Medical-Surgical Solutions segment.

Key Takeaways

McKesson reported a 6% increase in total revenues, reaching $60.8 billion. Earnings per diluted share increased to $3.54, and adjusted earnings per diluted share rose by 33% to $4.80. The company also completed a joint venture of its German wholesale business with Walgreens Boots Alliance.

Total revenues increased by 6% year-over-year to $60.8 billion.

Earnings per diluted share increased by $7.53 to $3.54.

Adjusted Earnings per diluted share increased by 33% to $4.80.

Fiscal 2021 Adjusted Earnings per diluted share guidance range increased to $16.00 to $16.50.

Total Revenue
$60.8B
Previous year: $57.6B
+5.5%
EPS
$4.8
Previous year: $3.6
+33.3%
Gross Profit
$3B
Previous year: $2.87B
+4.6%
Cash and Equivalents
$3.09B
Previous year: $1.36B
+127.9%
Free Cash Flow
$919M
Previous year: -$147M
-725.2%
Total Assets
$61.6B
Previous year: $59B
+4.3%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson raised fiscal 2021 Adjusted Earnings per diluted share guidance to $16.00 to $16.50 from the previous range of $14.70 to $15.50, reflecting strong execution and earlier improvement in volumes relative to expectations through the first half of fiscal 2021.

Positive Outlook

  • Strong execution
  • Earlier improvement in volumes
  • Adjusted Earnings per diluted share related to the kitting and storage of ancillary supplies for future COVID-19 vaccines: $0.15 to $0.20

Challenges Ahead

  • Full recovery of pharmaceutical prescription volumes and patient visits is not likely to occur this fiscal year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income