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Sep 30, 2022
McKesson Q2 2023 Earnings Report
McKesson reported a 5% increase in total revenues and a decrease of 1% in adjusted earnings per diluted share.
Key Takeaways
McKesson Corporation reported a 5% increase in total revenues to $70.2 billion for the second quarter of fiscal year 2023. Earnings per diluted share from continuing operations increased to $6.46, while adjusted earnings per diluted share decreased by 1% to $6.06. The company raised its full-year adjusted earnings per diluted share guidance.
Total revenues increased by 5% to $70.2 billion.
Earnings per diluted share from continuing operations increased by $4.75 to $6.46.
Adjusted Earnings per Diluted Share decreased 1% to $6.06.
Fiscal 2023 Adjusted Earnings per Diluted Share guidance range increased to $24.45 to $24.95.
McKesson
McKesson
McKesson Revenue by Segment
Revenue by Segment
U.S. Pharmaceutical Revenue
CapyFin.comPrescription Technology Solutions Revenue
CapyFin.comMedical-Surgical Solutions Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
McKesson raised fiscal 2023 Adjusted Earnings per Diluted Share guidance to $24.45 to $24.95 from the previous range of $23.95 to $24.65 to reflect operating business performance and increased contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and COVID-19 tests.
Positive Outlook
- U.S. government’s COVID-19 vaccine distribution program: $0.60 to $0.70
- U.S. government’s kitting, storage, and distribution of ancillary supplies program and COVID-19 tests: $1.00 to $1.10
- Fiscal 2023 Adjusted Earnings per Diluted Share guidance indicates 11% to 14% forecasted growth compared to prior year, excluding the impacts of the above items from both fiscal 2023 guidance and fiscal 2022 results.
- McKesson signed an agreement in principle to extend its pharmaceutical distribution partnership with CVS Health through June 2027.
- McKesson continues to expand its differentiated oncology and biopharma businesses, further demonstrating meaningful progress against its company priorities.
Challenges Ahead
- Net gains and losses associated with McKesson Ventures’ equity investments: Approximately ($0.15)
- Second-quarter Adjusted Earnings per Diluted Share was $6.06 compared to $6.15 a year ago, a decrease of 1%, driven by prior year net gains from McKesson Ventures' equity investments and lower contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and COVID-19 tests, partially offset by a lower share count.
- Second-quarter Adjusted Earnings per Diluted Share included pre-tax net losses of approximately $3 million associated with McKesson Ventures' equity investments, compared to pre-tax net gains of approximately $97 million in the second-quarter of fiscal 2022.
- Second-quarter revenues for Medical-Surgical Solutions Segment decreased by 9%, driven by lower sales of COVID-19 tests, partially offset by growth in the primary care business.
- Second-quarter revenues for International Segment decreased by 25%, driven by the divestitures of McKesson's UK and Austrian businesses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income