CVS CVS Health Corporation

McKesson Corp. said profit rose in its fourth quarter, helped by higher revenue and a reduction in operating expenses.

For the year ending in March 2017, the drug wholesaler expects earnings excluding items of $13.30 to $13.80 a share. Analysts polled by Thomson Reuters expect $13.48.

The company's outlook for the current year anticipates "solid growth across our businesses and growth from capital deployment" and the negative effects of customer consolidation and generic-drug pricing trends.

McKesson noted pricing concerns in January when it lowered fiscal 2016 earnings guidance and said it would review its cost structure. In March, McKesson said it would cut about 1,600 jobs, or about 4% of its U.S. workforce.

In February, wholesaler AmerisourceBergen Corp. said it was experiencing a "decline in generic inflation," and last week generic-drug maker Perrigo Co. cut its earnings forecast amid "industry and competitive pressures."

McKesson's customer-consolidation concerns have stemmed from transactions including the August sale of Omnicare to CVS Health Corp.

For the quarter ended March 31, net income was $431 million, or $1.88 a share, compared with $132 million, or 56 cents a share, a year earlier. Adjusted earnings were $2.44 a share.

Revenue rose 4% to $46.7 billion. Analysts polled by Thomson Reuters expected $46.9 billion.

Full-year adjusted earnings per share, excluding certain items, totaled $12.52 a share, below company expectations of $12.60 to $12.90 a share.

Last month, McKesson bought Vantage Oncology LLC and Biologics Inc. for about $1.2 billion combined. In March, it agreed to buy Rexall Health from Canada's Katz Group for C$3 billion.

McKesson shares fell 0.9% after hours.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

May 04, 2016 18:05 ET (22:05 GMT)

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