McKesson Corporation
CEO : Mr. Brian S. Tyler Ph.D.
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q3 | 2.7% YoY | 356.2% | 2865.4% | 2023-02-01 |
Britt Vitalone says,
Summary of McKesson Q3 2023 Earnings Call Transcript
- McKesson’s solid financial performance and confidence in the underlying business has led to an increase and narrowing of their full year outlook for fiscal 2023 adjusted earnings per diluted share to a range of $25.75 to $26.15.
- Consolidated revenues of $70.5 billion increased 3%, driven by growth in the U.S. Pharmaceutical segment resulted from increased specialty product volumes, including retail national account customers, partially offset by lower revenues in the International segment.
- Gross profit was $3 billion for the quarter, a decrease of 10%. Excluding the impact of European business operations and completed divestitures, gross profit increased 7%, primarily as a result of growth in the U.S. Pharmaceutical segment.
- Operating profit was $1.4 billion, an increase of 9%, driven by growth across North American businesses led by the strong performance in the U.S. Pharmaceutical segment.
- The full year adjusted effective tax rate is expected to be in the range of 18% to 20%.
Brian Tyler says,
Guidance Increase and Financial Performance
- The company is raising its guidance range for fiscal 2023 adjusted earnings per diluted share from $24.45 to $24.95 to an updated range of $25.75 to $26.15, reflecting solid adjusted operating profit growth and the strength and stability of the North American businesses.
- The core distribution businesses continue to show solid growth and generate free cash flow, providing a strong balance sheet and the ability to invest internally and externally into the business.
Evolution of Portfolio
- MCK has divested the European region as well as a handful of smaller businesses over the last several years to focus its resources on areas that support its long-term strategy.
- The company has invested both organically and through acquisitions to add to its differentiated capabilities, especially in areas where it has deep expertise and that are central to its long-term growth strategy.
Expansion of Oncology and Biopharma Ecosystems
- MCK has made meaningful progress in expanding its oncology and biopharma ecosystems through strategic investments, exemplified by the US Oncology Network’s expansion and the joint venture with Sarah Cannon Research Institute as well as the acquisition of Genospace.
- The company has systematically built and acquired an ecosystem of assets that complement each other and are more valuable together than as separate stand-alone solutions, ultimately improving patient outcomes and impacting real lives.
Core Distribution Businesses
- The fundamentals of the North American distribution businesses remain strong, and the company is continuously evaluating how to drive efficiencies in its core operations to ensure optimal talent and resources to help these businesses succeed.
- The contract to extend the pharmaceutical distribution partnership with CVS Health through June of 2027 has been finalized, exemplifying the value of the company’s scaled distribution capabilities.
Environmental Sustainability
- In January, MCK received approval by the Science Based Targets initiative for its near-term climate change targets that contribute to reducing its greenhouse gas emissions, demonstrating its commitment to environmental sustainability and its response to climate change.
Q & A sessions,
Revenue and AOP growth in access affordability and adherence
- Revenue growth of 9% year-over-year
- AOP growth of 7% this year
- $15 billion-plus market opportunity in access affordability and adherence
- Confident in 11% target growth for this segment
Biosimilars
- 40 approved biosimilars, 25 launched
- Channel will matter
- Majority of the opportunity being ahead of us
- Biosimilars will be good for our business model going forward
Fiscal 2023 Guidance
- Raising guidance range for fiscal 2023 adjusted earnings per diluted share from $24.45 to $24.95 to an updated range of $25.75 to $26.15
Oncology and Biopharma Ecosystems
- Expanding the oncology and biopharma ecosystems
- Strategic investments made year-to-date
- The US Oncology Network expansion
- Joint venture with Sarah Cannon Research Institute
- Acquisition of Genospace
Prescription Technology Solutions
- Building the business since 2006
- Acquisition of RelayHealth
- Acquisition of CoverMyMeds
- Acquisition of RxCrossroads
- Acquisition of Rx Savings Solutions
- McKesson prescription technology solutions connect pharmacies, providers, payers and biopharma manufacturers for next-generation patient access, affordability and adherence solutions that are automated and integrated into provider workflows
No bad stock 