Earnings Preview: McKesson's EPS, Revenue Expected to Rise

McKesson (NYSE: MCK) announces its next round of earnings this Tuesday, October 25, 2011. Get the latest predictions in Benzinga's essential guide to the company's second quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of $1.39/share and revenues of $29.5 billion. McKesson's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.03/share on revenues of $27.53 billion. Can McKesson manage the estimated 35% rise in EPS and 7.2% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Tuesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of McKesson were trading at $73.19 as of October 19, 2011. Since January 1st, shares of McKesson have given investors a return of 4.8%. For a full 12 months, the return has risen by 13%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for McKesson is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of McKesson's peers.

• AmerisourceBergen (NYSE: ABC): Moderate Buy with a $0.61 recent quarter EPS
• Cardinal Health (NYSE: CAH): Moderate Buy with a $0.59 recent quarter EPS
• Cerner (NASDAQ: CERN): Moderate Buy with a $0.42 recent quarter EPS
• Henry Schein (NASDAQ: HSIC): Hold with a $1.01 recent quarter EPS

McKesson is in the retail-drug stores industry, which has experienced price/earnings growth of 1.5%.

Finally, a description of the company's main areas of operation: McKesson delivers cost-reducing medicines, pharmaceutical supplies, information, and care management products and services.

Take Action:

That's your advanced look at McKesson's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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