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Mar 31, 2021

McKesson Q4 2021 Earnings Report

Reported fourth-quarter and full-year results for fiscal year 2021.

Key Takeaways

McKesson's fourth-quarter revenues increased by 1% to $59.1 billion, driven by market growth and higher volumes from retail national account customers in the U.S. Pharmaceutical segment. The company's adjusted EPS increased by 18% to $5.05, primarily driven by COVID-19 vaccine distribution and kitting programs.

Fourth-quarter total revenues of $59.1 billion increased 1%.

Full-year total revenues of $238.2 billion increased 3%.

Fourth-quarter Adjusted Earnings per diluted share of $5.05 increased 18%.

Full-year Free Cash Flow of $3.9 billion.

Total Revenue
$59.1B
Previous year: $58.5B
+1.0%
EPS
$5.05
Previous year: $4.27
+18.3%
Gross Profit
$3.3B
Previous year: $3.34B
-1.2%
Cash and Equivalents
$6.28B
Previous year: $4.02B
+56.4%
Free Cash Flow
$3.9B
Previous year: $3.87B
+0.8%
Total Assets
$65B
Previous year: $61.2B
+6.2%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson expects full-year fiscal 2022 Adjusted Earnings per diluted share of $18.85 to $19.45, which reflects Adjusted Operating Profit growth in all segments coupled with disciplined, efficient capital deployment, including approximately $2 billion of share repurchases.

Positive Outlook

  • Adjusted Operating Profit growth in all segments
  • Disciplined, efficient capital deployment
  • Approximately $2 billion of share repurchases
  • Adjusted Earnings per diluted share guidance range of $18.85 to $19.45
  • 3% to 6% growth in Revenues

Challenges Ahead

  • Guidance assumes $0.50 to $0.70 of Adjusted Earnings per diluted share related to the U.S. government’s COVID-19 vaccine distribution and kitting programs
  • Risks and uncertainties such as those described in the Cautionary Statements
  • Changes in pricing and reimbursement models
  • Changes or disruptions in product supply
  • Difficulties in sourcing products and changes in pricing due to the effects of the COVID-19 pandemic on supply chains

Revenue & Expenses

Visualization of income flow from segment revenue to net income