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Dec 31, 2022

McKesson Q3 2023 Earnings Report

McKesson reported solid Q3 2023 results, driven by execution across scaled distribution businesses and differentiated capabilities in oncology and biopharma services platforms. The company raised its full-year guidance.

Key Takeaways

McKesson Corporation reported a 3% increase in total revenues to $70.5 billion for the third quarter of fiscal year 2023. Earnings per diluted share from continuing operations increased by $7.69 to $7.65, while Adjusted Earnings per Diluted Share increased by 12% to $6.90. The company also raised its fiscal 2023 Adjusted Earnings per Diluted Share guidance to a range of $25.75 to $26.15.

Total revenues increased 3% to $70.5 billion.

Earnings per diluted share from continuing operations increased $7.69 to $7.65.

Adjusted Earnings per Diluted Share increased 12% to $6.90.

Fiscal 2023 Adjusted Earnings per Diluted Share guidance raised to $25.75 to $26.15.

Total Revenue
$70.5B
Previous year: $68.6B
+2.7%
EPS
$6.9
Previous year: $6.15
+12.2%
Gross Profit
$3.17B
Cash and Equivalents
$2.77B
Free Cash Flow
$1.46B
Previous year: $1.2B
+21.5%
Total Assets
$62.7B

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson raised fiscal 2023 Adjusted Earnings per Diluted Share guidance to $25.75 to $26.15 from the previous range of $24.45 to $24.95 to reflect solid operating business performance.

Positive Outlook

  • U.S. government’s COVID-19 vaccine distribution program: $0.70 to $0.80
  • U.S. government’s kitting, storage, and distribution of ancillary supplies program and COVID-19 tests: $1.10 to $1.20
  • Approximately ($0.15) related to year-to-date net gains and losses associated with McKesson Ventures’ equity investments
  • $0.65 related to the termination of the tax receivable agreement with Change Healthcare
  • Fiscal 2023 Adjusted Earnings per Diluted Share Excluding Certain Items guidance indicates 13% to 16% forecasted growth compared to prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income