McKesson significantly exceeds Wall Street expectations with Q2 results

SAN FRANCISCO – McKesson on Thursday exceeded Wall Street analyst expecations by 32 cents, reporting adjusted earnings of $3.31, up 19% as compared to year ago figures. Revenues for the second quarter ended Sept. 30 were $48.8 billion, up 10%. On a constant currency basis, revenues increased 14% over the prior year.

 

“McKesson delivered solid results during the first six months of our fiscal year. In addition to the strong operating performance across our businesses in the second quarter, we repurchased approximately 2.5 million shares totaling nearly $500 million, announced the acquisition of the U.K. pharmacy operations of Sainsbury’s and the acquisition of the pharmaceutical distribution business of United Drug Group in Ireland," stated John Hammergren, chairman and CEO of McKesson. "At its recent meeting, our board of directors also authorized a new $2 billion share repurchase program and we remain exceptionally well positioned to continue to execute our portfolio approach to capital deployment. We were also privileged to be selected by Albertsons as its pharmaceutical sourcing and distribution partner across all of its U.S. brands."

 

Distribution Solutions revenues were $48 billion for the quarter, up 11% on a reported basis and up 14% on a constant currency basis.

 

North America pharmaceutical distribution and services revenues were $40.6 billion for the quarter, up 16% on a reported basis and 17% on a constant currency basis.