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Dec 31, 2023

McKesson Q3 2024 Earnings Report

McKesson delivered solid results, driven by growth in North American businesses and commitment to company priorities and growth strategies. The company raised full year guidance.

Key Takeaways

McKesson Corporation reported a 15% increase in third quarter revenues to $80.9 billion. Earnings per diluted share decreased to $4.42, while adjusted earnings per diluted share increased by 12% to $7.74. The company raised its full year adjusted earnings per diluted share guidance to $27.25 to $27.65.

Consolidated revenues increased by 15% to $80.9 billion.

Earnings per diluted share decreased by $3.23 to $4.42.

Adjusted Earnings per Diluted Share increased 12% to $7.74.

Full year Adjusted Earnings per Diluted Share guidance range raised to $27.25 to $27.65.

Total Revenue
$80.9B
Previous year: $70.5B
+14.8%
EPS
$7.74
Previous year: $6.9
+12.2%
Gross Profit
$3.15B
Previous year: $3.17B
-0.7%
Cash and Equivalents
$1.98B
Previous year: $2.77B
-28.6%
Free Cash Flow
-$251M
Previous year: $1.46B
-117.2%
Total Assets
$66.5B
Previous year: $62.7B
+6.1%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson is raising fiscal 2024 Adjusted Earnings per Diluted Share guidance to $27.25 to $27.65 from the previous range of $26.80 to $27.40 to reflect solid operating performance, which reflects a growth rate of 5% to 7%.

Positive Outlook

  • Solid operating performance
  • Growth rate of 5% to 7% is expected
  • Adjusted Earnings per Diluted Share guidance raised
  • Reflects dedication to company priorities
  • Reflects dedication to growth strategies

Challenges Ahead

  • Includes approximately ($0.15) related to year-to-date losses associated with McKesson Ventures' equity investments.
  • McKesson cannot reasonably forecast LIFO inventory-related adjustments
  • McKesson cannot reasonably forecast certain litigation loss and gain contingencies
  • McKesson cannot reasonably forecast restructuring, impairment and related charges
  • McKesson cannot reasonably forecast other adjustments, which are difficult to predict and estimate.

Revenue & Expenses

Visualization of income flow from segment revenue to net income