McKesson Beats Expectations for 4Q, Warns of Covid-19 Challenges Ahead
May 20 2020 - 8:04AM
Dow Jones News
By Micah Maidenberg
McKesson Corp. warned that it believes a key profit metric will
slip and revenue growth will slow in its new fiscal year as the
drug distributor wrestles with the Covid-19 pandemic.
Net income in the fiscal fourth quarter that ended in March rose
to $1.02 billion, or $5.85 a share, from a loss of $796 million, or
$4.17 a share, in the comparable period.
After adjustments, earnings per share rose to $4.27, surpassing
the $4.10 a share consensus estimate, according to FactSet.
McKesson reported $58.54 billion in revenue, up 12% compared
with the same quarter in 2019 and higher than the $55.54 billion
that analysts expected, according to FactSet.
For its year that ended March 31, the company said it earned
$14.95 a share in adjusted earnings. Revenue grew 8% year over
year.
Looking ahead, McKesson said Wednesday it expects earnings,
following adjustments, of $13.95 to $14.75 a share for its fiscal
2021 year and revenue growth of 2% to 4% during the period.
The new profit forecast "reflects anticipated headwinds in
fiscal 2021 as a result of the Covid-19 pandemic and a continuation
of disciplined, efficient capital deployment, including investments
in the business," McKesson said.
The coronavirus has created some challenges for companies with
businesses tied to pharmaceuticals. Executives at CVS Health Corp.
said this month that new drug therapy starts dropped in April
compared with the year before as Covid-19 kept patients from seeing
their doctors.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 20, 2020 07:49 ET (11:49 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
McKesson (NYSE:MCK)
Historical Stock Chart
From Mar 2024 to Apr 2024
McKesson (NYSE:MCK)
Historical Stock Chart
From Apr 2023 to Apr 2024