McKesson Q4 Profit Tops Expectations

McKesson Corporation MCK reported stronger-than-expected earnings for the fourth quarter. The San Francisco, California-based company posted quarterly net income of $132 million, or $0.56 per share, down from $370 million, or $1.58 per share, in the year-ago period. Its adjusted income came in at $2.94 per share during the latest quarter. Its sales surged to $44.9 billion from $37.8 billion. However, analysts were expecting a profit of $2.75 per share on revenue of $45.04 billion. The average estimate among 15 Estimize users was for earnings of $2.82 per share and revenue of $45.61 billion. Distribution Solutions revenue climbed 19 percent year-over-year in the quarter. North America pharmaceutical distribution and services revenue rose 18 percent, while international pharmaceutical distribution and services revenue gained 3 percent in the quarter. Medical-Surgical distribution and services revenue climbed 5% for the fourth quarter. During the year, McKesson repurchased $340 million of its common stock and paid $227 million in dividends. The company's board authorized a new $500 million buyback plan. "Our fourth-quarter results wrapped up another year of outstanding earnings growth, led by strong execution in our Distribution Solutions segment," said John H. Hammergren, chairman and chief executive officer. "For the full year, adjusted earnings per diluted share increased 29% from the prior year. Our strong financial and operating performance combined with our disciplined portfolio approach to capital deployment provides strong momentum for Fiscal 2016." The company expects FY16 adjusted earnings of $12.20 to $12.70 per share, versus analysts' estimates of $12.57 per share. McKesson shares gained 0.18 percent to $229.97 in the after-hours trading session.
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