Leerink Partnrs Estimates McKesson FY2029 Earnings

Key Points

• Leerink Partners estimated McKesson's earnings per share (EPS) for FY2029 at $56.30, significantly higher than the current consensus estimate of $32.77.
• McKesson's latest quarterly results showed earnings of $8.26 per share, falling short of the $8.33 consensus, despite a revenue of $97.83 billion.
• Several analysts increased their price targets for McKesson, with a consensus rating of "Moderate Buy" and an average price target of $829.08.

McKesson Corporation (NYSE:MCK - Free Report) - Stock analysts at Leerink Partnrs issued their FY2029 EPS estimates for McKesson in a research report issued to clients and investors on Monday, October 6th. Leerink Partnrs analyst M. Cherny expects that the company will earn $56.30 per share for the year. The consensus estimate for McKesson's current full-year earnings is $32.77 per share.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.McKesson's revenue for the quarter was up 23.4% on a year-over-year basis. During the same period in the previous year, the company posted $7.88 earnings per share.

Other equities research analysts have also recently issued research reports about the company. Citigroup boosted their target price on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. Leerink Partners boosted their price objective on shares of McKesson from $785.00 to $850.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 24th. JPMorgan Chase & Co. increased their target price on shares of McKesson from $821.00 to $853.00 and gave the stock an "overweight" rating in a report on Friday, September 26th. Deutsche Bank Aktiengesellschaft raised their target price on shares of McKesson from $775.00 to $856.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. Finally, UBS Group boosted their price target on shares of McKesson from $820.00 to $860.00 and gave the stock a "buy" rating in a research report on Wednesday, September 24th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $829.08.

McKesson Price Performance

Shares of McKesson stock opened at $740.82 on Tuesday. The firm has a market cap of $92.15 billion, a price-to-earnings ratio of 29.54, a price-to-earnings-growth ratio of 1.32 and a beta of 0.52. McKesson has a one year low of $482.44 and a one year high of $776.14. The stock's 50-day moving average is $703.30 and its 200-day moving average is $704.05.

Institutional Investors Weigh In On McKesson

Several hedge funds have recently bought and sold shares of the stock. Solstein Capital LLC increased its stake in shares of McKesson by 171.4% during the second quarter. Solstein Capital LLC now owns 38 shares of the company's stock worth $28,000 after purchasing an additional 24 shares during the period. Bank of Jackson Hole Trust increased its position in McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after buying an additional 18 shares during the period. State of Wyoming acquired a new stake in shares of McKesson during the second quarter worth $29,000. CBIZ Investment Advisory Services LLC boosted its position in shares of McKesson by 1,366.7% in the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after acquiring an additional 41 shares during the period. Finally, GFG Capital LLC bought a new stake in shares of McKesson in the second quarter valued at about $30,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the completion of the transaction, the chief executive officer directly owned 4,012 shares in the company, valued at approximately $2,830,987.56. The trade was a 74.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction on Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the completion of the sale, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 43,560 shares of company stock valued at $30,438,602. Insiders own 0.08% of the company's stock.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd were given a $0.82 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's payout ratio is 13.08%.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.

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