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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.
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 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