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McKesson
🇺🇸 NYSE:MCK
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Dec 31, 2020

McKesson Q3 2021 Earnings Report

McKesson reported third-quarter results with revenue growth and increased adjusted earnings per share.

Key Takeaways

McKesson reported a 6% increase in third-quarter revenues, reaching $62.6 billion. Adjusted earnings per diluted share rose by 21% to $4.60. The company recorded a pre-tax charge of $8.1 billion related to opioid litigation, resulting in a Loss per diluted share of $(39.03).

Total revenues reached $62.6 billion, a 6% increase year-over-year.

Loss per diluted share was $(39.03), impacted by an $8.1 billion pre-tax charge related to opioid litigation.

Adjusted Earnings per diluted share increased by 21% to $4.60.

The Board of Directors authorized an additional $2.0 billion share repurchase program.

Total Revenue
$62.6B
Previous year: $59.2B
+5.8%
EPS
$4.6
Previous year: $3.81
+20.7%
Gross Profit
$3.15B
Previous year: $3.03B
+3.9%
Cash and Equivalents
$3.58B
Previous year: $2.07B
+73.2%
Free Cash Flow
$1.09B
Previous year: -$237M
-561.6%
Total Assets
$61.8B
Previous year: $60.9B
+1.6%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson raised and narrowed fiscal 2021 Adjusted Earnings per diluted share guidance to $16.95 to $17.25 from the previous range of $16.00 to $16.50 to primarily reflect improved growth in the business and the contribution from McKesson’s successful distribution of COVID-19 vaccines and ancillary supplies.

Positive Outlook

  • Improved growth in the business.
  • Contribution from McKesson’s successful distribution of COVID-19 vaccines and ancillary supplies.
  • Expect Adjusted Earnings per diluted share of $16.95 to $17.25.
  • COVID-19 vaccine distribution is expected to contribute $0.25 to $0.35.
  • Kitting and distribution of ancillary supplies for COVID-19 vaccines is expected to contribute $0.20 to $0.30.

Challenges Ahead

  • Overall environment remains challenging due to the sustained impact of the COVID-19 pandemic.
  • A full recovery of pharmaceutical prescription volumes and patient visits will not occur this fiscal year.
  • Opioid-related claims of governmental entities resulted in a pre-tax charge of $8.1 billion.
  • Long-lived asset impairment charge of $115 million primarily related to McKesson’s retail pharmacy businesses in the International segment.
  • Higher tax rate and the lapping of the prior year contribution from the company's now separated investment in Change Healthcare LLC

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View McKesson