Zacks Research Has Strong Estimate for McKesson Q3 Earnings

Key Points

• Zacks Research has raised its Q3 2027 earnings per share (EPS) estimate for McKesson to $10.24, up from a previous forecast of $10.20, indicating positive growth expectations.
• McKesson's recent quarterly earnings report showed an EPS of $8.26, falling short of the $8.33 consensus estimate, although the revenue of $97.83 billion exceeded expectations.
• The company has increased its quarterly dividend to $0.82 per share, up from $0.71, with a yield of 0.4%, reflecting its ongoing commitment to returning value to shareholders.

McKesson Corporation (NYSE:MCK - Free Report) - Research analysts at Zacks Research raised their Q3 2027 earnings per share (EPS) estimates for shares of McKesson in a note issued to investors on Tuesday, September 23rd. Zacks Research analyst Team now anticipates that the company will earn $10.24 per share for the quarter, up from their previous forecast of $10.20. The consensus estimate for McKesson's current full-year earnings is $32.77 per share. Zacks Research also issued estimates for McKesson's FY2027 earnings at $40.22 EPS and Q1 2028 earnings at $9.43 EPS.

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

Several other research firms have also recently issued reports on MCK. Bank of America lifted their price objective on shares of McKesson from $800.00 to $850.00 and gave the stock a "buy" rating in a research report on Wednesday. Citigroup lifted their price objective on shares of McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research note on Wednesday. Evercore ISI increased their target price on shares of McKesson from $800.00 to $825.00 and gave the stock an "outperform" rating in a research note on Wednesday. TD Cowen boosted their price target on McKesson from $830.00 to $864.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, Wall Street Zen downgraded McKesson from a "buy" rating to a "hold" rating in a research note on Saturday, September 20th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $826.91.

McKesson Trading Up 2.6%

Shares of NYSE MCK opened at $760.73 on Thursday. The stock has a market capitalization of $94.62 billion, a PE ratio of 30.33, a PEG ratio of 1.43 and a beta of 0.51. McKesson has a twelve month low of $472.29 and a twelve month high of $770.00. The stock has a fifty day simple moving average of $696.23 and a 200-day simple moving average of $697.91.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Caldwell Trust Co acquired a new stake in shares of McKesson during the 2nd quarter valued at approximately $1,485,000. Valeo Financial Advisors LLC increased its stake in McKesson by 8.1% in the 2nd quarter. Valeo Financial Advisors LLC now owns 1,542 shares of the company's stock valued at $1,130,000 after purchasing an additional 116 shares in the last quarter. WT Wealth Management raised its holdings in McKesson by 2.2% during the second quarter. WT Wealth Management now owns 833 shares of the company's stock worth $610,000 after purchasing an additional 18 shares during the last quarter. Osaic Holdings Inc. raised its holdings in McKesson by 49.8% during the second quarter. Osaic Holdings Inc. now owns 38,670 shares of the company's stock worth $27,764,000 after purchasing an additional 12,847 shares during the last quarter. Finally, American Trust purchased a new stake in McKesson during the second quarter worth $259,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction on Friday, August 8th. The stock was 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 of the company's stock, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction on Friday, July 11th. The stock was sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 43,560 shares of company stock valued at $30,438,602 in the last quarter. 0.08% of the stock is currently owned by company insiders.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This is a boost from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's dividend payout ratio is currently 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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