McKesson (NYSE:MCK) Issues Quarterly Earnings Results, Misses Expectations By $0.16 EPS

McKesson (NYSE:MCK - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $6.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.34 by ($0.16), Briefing.com reports. The firm had revenue of $76.36 billion for the quarter, compared to analyst estimates of $79.32 billion. McKesson had a net margin of 0.99% and a negative return on equity of 262.63%. The firm's revenue was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $7.19 EPS. McKesson updated its FY25 guidance to $31.25-$32.05 EPS.

McKesson Stock Down 0.5 %

NYSE:MCK traded down $2.53 on Wednesday, reaching $543.22. The stock had a trading volume of 1,378,614 shares, compared to its average volume of 713,234. The company has a market capitalization of $71.38 billion, a P/E ratio of 24.49, a price-to-earnings-growth ratio of 1.41 and a beta of 0.45. McKesson has a 1-year low of $373.28 and a 1-year high of $566.01. The stock has a fifty day moving average price of $531.17 and a 200-day moving average price of $493.81.

McKesson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Monday, June 3rd will be given a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 0.46%. The ex-dividend date of this dividend is Monday, June 3rd. McKesson's dividend payout ratio (DPR) is currently 11.24%.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 3,473 shares of the stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the sale, the chief executive officer now directly owns 43,445 shares in the company, valued at approximately $22,789,074.75. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other McKesson news, EVP Leann B. Smith sold 186 shares of the business's stock in a transaction dated Tuesday, February 13th. The shares were sold at an average price of $496.00, for a total value of $92,256.00. Following the completion of the transaction, the executive vice president now directly owns 1,511 shares of the company's stock, valued at $749,456. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Brian S. Tyler sold 3,473 shares of the stock in a transaction that occurred on Friday, March 15th. The shares were sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the sale, the chief executive officer now directly owns 43,445 shares in the company, valued at $22,789,074.75. The disclosure for this sale can be found here. Company insiders own 0.21% of the company's stock.

Wall Street Analysts Forecast Growth

MCK has been the subject of a number of research reports. Evercore ISI lifted their target price on shares of McKesson from $590.00 to $600.00 and gave the company an "outperform" rating in a research note on Wednesday. SVB Leerink initiated coverage on McKesson in a research report on Monday, February 26th. They issued an "outperform" rating and a $600.00 target price on the stock. Barclays lifted their price target on McKesson from $571.00 to $596.00 and gave the company an "overweight" rating in a report on Wednesday. StockNews.com upgraded McKesson from a "buy" rating to a "strong-buy" rating in a report on Saturday. Finally, UBS Group boosted their target price on shares of McKesson from $620.00 to $630.00 and gave the stock a "buy" rating in a research report on Wednesday. Two equities research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $569.86.

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.