Zacks: Brokerages Anticipate McKesson Co. (MCK) Will Post Earnings of $3.18 Per Share

Equities analysts expect McKesson Co. (NYSE:MCK) to announce earnings of $3.18 per share for the current fiscal quarter, Zacks Investment Research reports. Five analysts have made estimates for McKesson’s earnings. The highest EPS estimate is $3.30 and the lowest is $3.02. McKesson reported earnings of $3.41 per share in the same quarter last year, which suggests a negative year over year growth rate of 6.7%. The company is expected to issue its next earnings report on Thursday, February 7th.

On average, analysts expect that McKesson will report full year earnings of $13.41 per share for the current fiscal year, with EPS estimates ranging from $13.27 to $13.53. For the next fiscal year, analysts anticipate that the company will report earnings of $14.16 per share, with EPS estimates ranging from $13.90 to $14.34. Zacks Investment Research’s EPS calculations are a mean average based on a survey of sell-side research firms that cover McKesson.

McKesson (NYSE:MCK) last issued its earnings results on Thursday, October 25th. The company reported $3.60 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $3.28 by $0.32. The business had revenue of $53.08 billion for the quarter, compared to the consensus estimate of $53.56 billion. McKesson had a net margin of 0.06% and a return on equity of 26.55%.

Several analysts have recently weighed in on MCK shares. Mizuho reaffirmed a “hold” rating and issued a $133.00 target price on shares of McKesson in a report on Sunday, August 12th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $160.00 target price on shares of McKesson in a report on Friday, July 27th. JPMorgan Chase & Co. lowered their target price on shares of McKesson from $181.00 to $160.00 and set an “overweight” rating on the stock in a report on Friday, July 27th. Citigroup lowered their target price on shares of McKesson from $160.00 to $2.86 and set a “buy” rating on the stock in a report on Friday, July 20th. Finally, ValuEngine raised shares of McKesson from a “strong sell” rating to a “sell” rating in a report on Monday, October 29th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and eight have assigned a buy rating to the company’s stock. McKesson has a consensus rating of “Hold” and a consensus price target of $150.26.

Shares of NYSE:MCK traded down $1.42 during midday trading on Thursday, hitting $127.47. The stock had a trading volume of 1,349,478 shares, compared to its average volume of 1,688,696. The company has a market cap of $25.49 billion, a price-to-earnings ratio of 10.10, a PEG ratio of 1.48 and a beta of 1.05. The company has a quick ratio of 0.56, a current ratio of 0.99 and a debt-to-equity ratio of 0.69. McKesson has a 1 year low of $117.19 and a 1 year high of $178.86.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 2nd. Investors of record on Monday, December 3rd will be paid a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 1.22%. The ex-dividend date is Friday, November 30th. McKesson’s dividend payout ratio (DPR) is 12.36%.

In related news, Director N Anthony Coles sold 1,350 shares of the firm’s stock in a transaction dated Friday, August 31st. The shares were sold at an average price of $128.69, for a total value of $173,731.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.87% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Raymond James Trust N.A. raised its position in McKesson by 2.5% during the second quarter. Raymond James Trust N.A. now owns 15,079 shares of the company’s stock worth $2,012,000 after acquiring an additional 371 shares during the last quarter. World Asset Management Inc raised its position in McKesson by 2.8% during the second quarter. World Asset Management Inc now owns 14,154 shares of the company’s stock worth $1,888,000 after acquiring an additional 384 shares during the last quarter. OLD National Bancorp IN raised its position in McKesson by 4.9% during the second quarter. OLD National Bancorp IN now owns 8,573 shares of the company’s stock worth $1,144,000 after acquiring an additional 397 shares during the last quarter. Culbertson A N & Co. Inc. raised its position in McKesson by 1.2% during the third quarter. Culbertson A N & Co. Inc. now owns 34,175 shares of the company’s stock worth $4,533,000 after acquiring an additional 399 shares during the last quarter. Finally, IFP Advisors Inc raised its position in McKesson by 8.9% during the third quarter. IFP Advisors Inc now owns 5,032 shares of the company’s stock worth $667,000 after acquiring an additional 410 shares during the last quarter. Hedge funds and other institutional investors own 88.34% of the company’s stock.

About McKesson

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates in three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products; and offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices.

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