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Mar 31, 2023
McKesson Q4 2023 Earnings Report
McKesson's Q4 2023 earnings increased, driven by growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments, with revenue up 4% and adjusted EPS up 23%.
Key Takeaways
McKesson Corporation reported strong fourth-quarter and full-year results for fiscal year 2023. Fourth-quarter revenues increased by 4% to $68.9 billion, and adjusted earnings per diluted share increased by 23% to $7.19. The company also raised its long-term adjusted segment operating profit growth targets, reflecting confidence in its strategic growth prospects.
Total revenues increased 4% to $68.9 billion.
Earnings per diluted share from continuing operations increased to $5.71.
Adjusted Earnings per Diluted Share increased 23% to $7.19.
The company raised long-term Adjusted Segment Operating Profit growth targets.
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 anticipates Fiscal 2024 Adjusted Earnings per Diluted Share of $26.10 to $26.90, which reflects expected growth at or above updated long-term segment targets, execution against strategic growth opportunities, and a disciplined approach to capital allocation, delivering sustainable long-term earnings growth.
Positive Outlook
- Focus on people and culture to achieve the company's mission of improving care in every setting - one product, one partner, one patient at a time.
- Accelerate the expansion of McKesson's differentiated oncology and biopharma services platforms.
- Drive sustainable core growth through the strong value proposition of McKesson's scaled and durable distribution business.
- Evolve and grow the portfolio through the continued exit of Europe, as we explore strategic alternatives to exit its remaining operations in Norway.
- McKesson is well positioned for strong growth in the years ahead and is raising long-term Adjusted Segment Operating Profit growth targets
Challenges Ahead
- COVID-19 related contracts with the U.S. government are scheduled to end in July 2023.
- The contribution from Europe continues to run off as guided.
- McKesson does not provide forward-looking guidance on a GAAP basis.
- McKesson cannot reliably forecast LIFO inventory-related adjustments.
- McKesson cannot reliably forecast certain litigation loss and gain contingencies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income