McKesson Updates Fiscal 2020 Guidance Following Completion of Change Healthcare Split-Off
March 17 2020 - 4:10PM
Business Wire
McKesson Corporation (NYSE:MCK) today announced it is updating
its adjusted earnings outlook for the fiscal year ending March 31,
2020 to reflect the completion of the company’s exit of its
investment in Change Healthcare, as announced on March 10,
2020.
McKesson is updating its previous fiscal 2020 Adjusted Earnings
per diluted share guidance range of $14.60 to $14.80 to a new range
of $14.67 to $14.87. This updated outlook reflects weighted average
shares outstanding used in the calculation of earnings per share of
approximately 182 million for the year, updated from the previous
assumption of approximately 183 million weighted average shares
outstanding for the year. All other underlying key fiscal 2020
assumptions provided in McKesson’s press release on February 4,
2020 are unchanged.
McKesson will host a conference call today, March 17, at 4:30 PM
Eastern Time to discuss the completion of the split-off and its
financial impact to McKesson. A live audio webcast of the
conference call will be available on McKesson’s Investor Relations
website at http://investor.mckesson.com. The conference call can
also be accessed by dialing 786-815-8297. The password is
‘McKesson’.
Non-GAAP Financial Measures
This press release includes the Non-GAAP financial measure
Adjusted Earnings Per Diluted Share. We define Adjusted Earnings as
GAAP income/loss from continuing operations, excluding amortization
of acquisition-related intangible assets, transaction-related
expenses and adjustments, LIFO inventory-related adjustments, gains
from antitrust legal settlements, restructuring, impairment and
related charges, and other adjustments as well as the related
income tax effects for each of these items, as applicable.
GAAP refers to the U.S. generally accepted accounting
principles. The company does not provide forward-looking guidance
on a GAAP basis and McKesson is unable to provide a quantitative
reconciliation of this forward-looking non-GAAP measure to the most
directly comparable forward-looking GAAP measure without
unreasonable effort, because McKesson cannot reliably forecast LIFO
inventory-related adjustments, gains from antitrust legal
settlements, restructuring, impairment and related charges, and
other adjustments, which are difficult to predict and estimate.
These items are inherently uncertain and depend on various factors,
many of which are beyond the company’s control, and as such, any
associated estimate and its impact on GAAP performance could vary
materially.
Cautionary Statements
The guidance contained in this press release constitutes
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, that involve risks and uncertainties that
could cause actual results to differ materially from those in those
statements. The reader should not place undue reliance on
forward-looking statements, which speak only as of the date they
are first made. Except to the extent required by law, the Company
undertakes no obligation to publicly update forward-looking
statements. It is not possible to identify all such risks and
uncertainties. We encourage investors to read the important risk
factors described in the Risk Factors section of the Company’s Form
10-K and Form 10-Q reports filed with the Securities and Exchange
Commission. These risk factors include, but are not limited to:
changes in the healthcare industry and regulatory environment;
fluctuations in foreign currency exchange rates; the impact of the
Change Healthcare joint venture on the company’s results of
operations; the company’s ability to manage and complete
divestitures and distributions; material adverse resolution of
pending legal proceedings, including those related to the
distribution of controlled substances; public health issues such as
infectious disease in the United States or abroad; cyberattack,
natural disaster, or malfunction of sophisticated internal computer
systems to perform as designed; and the potential inadequacy of
insurance to cover property loss or liability claims.
About McKesson Corporation
McKesson Corporation is a global leader in healthcare supply
chain management solutions, retail pharmacy, community oncology and
specialty care, and healthcare information technology. McKesson
partners with pharmaceutical manufacturers, providers, pharmacies,
governments and other organizations in healthcare to help provide
the right medicines, medical products and healthcare services to
the right patients at the right time, safely and cost-effectively.
United by our ICARE shared principles, our employees work every day
to innovate and deliver opportunities that make our customers and
partners more successful — all for the better health of patients.
McKesson has been named the “Most Admired Company” in the
healthcare wholesaler category by FORTUNE, a “Best Place to Work”
by the Human Rights Campaign Foundation, and a top
military-friendly company by Military Friendly. For more
information, visit www.mckesson.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200317005608/en/
Holly Weiss, 972-969-9174 (Investors) Holly.Weiss@McKesson.com
David Matthews, 214-952-0833 (Media) David.Matthews@McKesson.com
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