McKesson Co. (NYSE:MCK) Expected to Post Quarterly Sales of $54.94 Billion

Wall Street analysts expect that McKesson Co. (NYSE:MCK) will post sales of $54.94 billion for the current quarter, Zacks Investment Research reports. Five analysts have issued estimates for McKesson’s earnings, with the highest sales estimate coming in at $56.00 billion and the lowest estimate coming in at $53.64 billion. McKesson posted sales of $53.08 billion during the same quarter last year, which would indicate a positive year-over-year growth rate of 3.5%. The firm is expected to report its next earnings report before the market opens on Wednesday, October 30th.

On average, analysts expect that McKesson will report full year sales of $223.43 billion for the current year, with estimates ranging from $221.21 billion to $226.32 billion. For the next fiscal year, analysts forecast that the company will report sales of $232.19 billion, with estimates ranging from $226.86 billion to $239.25 billion. Zacks Investment Research’s sales calculations are an average based on a survey of analysts that follow McKesson.

McKesson (NYSE:MCK) last issued its quarterly earnings data on Wednesday, July 31st. The company reported $3.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.04 by $0.27. McKesson had a net margin of 0.27% and a return on equity of 30.73%. The firm had revenue of $55.73 billion during the quarter, compared to analysts’ expectations of $54.03 billion. During the same period last year, the company earned $2.90 earnings per share. The business’s revenue was up 5.9% on a year-over-year basis.

A number of research firms have recently weighed in on MCK. Wolfe Research downgraded shares of McKesson from an “outperform” rating to a “peer perform” rating in a research report on Monday, August 5th. JPMorgan Chase & Co. began coverage on shares of McKesson in a research report on Monday, July 22nd. They issued an “overweight” rating and a $164.00 target price on the stock. Guggenheim began coverage on shares of McKesson in a research report on Monday, July 22nd. They issued a “neutral” rating and a $152.00 target price on the stock. Morgan Stanley upped their target price on shares of McKesson from $130.00 to $135.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 27th. Finally, Cleveland Research reaffirmed a “hold” rating on shares of McKesson in a research report on Thursday, September 5th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company’s stock. McKesson presently has a consensus rating of “Hold” and an average price target of $147.20.

NYSE MCK traded down $0.86 during trading on Friday, hitting $146.06. The company had a trading volume of 1,415,700 shares, compared to its average volume of 1,549,458. The company has a current ratio of 1.01, a quick ratio of 0.58 and a debt-to-equity ratio of 1.14. McKesson has a one year low of $106.11 and a one year high of $153.30. The company has a market cap of $27.25 billion, a price-to-earnings ratio of 10.76, a price-to-earnings-growth ratio of 1.47 and a beta of 1.14. The company’s fifty day moving average is $140.50 and its 200-day moving average is $134.28.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Stockholders of record on Monday, December 2nd will be given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.12%. McKesson’s dividend payout ratio is presently 12.09%.

In related news, SVP Sundeep G. Reddy sold 422 shares of the stock in a transaction dated Monday, September 9th. The shares were sold at an average price of $143.79, for a total transaction of $60,679.38. Following the sale, the senior vice president now directly owns 1,268 shares of the company’s stock, valued at approximately $182,325.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 6,000 shares of the stock in a transaction dated Monday, September 30th. The shares were sold at an average price of $135.00, for a total transaction of $810,000.00. Following the sale, the chief executive officer now directly owns 18,192 shares in the company, valued at $2,455,920. The disclosure for this sale can be found here. Insiders have sold a total of 11,493 shares of company stock worth $1,612,988 over the last three months. 0.88% of the stock is currently owned by insiders.

A number of hedge funds have recently made changes to their positions in MCK. Nuveen Asset Management LLC lifted its stake in McKesson by 573.3% during the 2nd quarter. Nuveen Asset Management LLC now owns 1,811,727 shares of the company’s stock valued at $243,478,000 after acquiring an additional 1,542,644 shares during the period. Royal Bank of Canada lifted its stake in McKesson by 111.4% during the 2nd quarter. Royal Bank of Canada now owns 733,978 shares of the company’s stock valued at $98,640,000 after acquiring an additional 386,734 shares during the period. BlackRock Inc. lifted its stake in McKesson by 2.1% during the 2nd quarter. BlackRock Inc. now owns 15,097,053 shares of the company’s stock valued at $2,028,894,000 after acquiring an additional 308,554 shares during the period. PGGM Investments lifted its stake in McKesson by 65.6% during the 3rd quarter. PGGM Investments now owns 515,810 shares of the company’s stock valued at $70,491,000 after acquiring an additional 204,315 shares during the period. Finally, APG Asset Management N.V. lifted its stake in McKesson by 102.0% during the 2nd quarter. APG Asset Management N.V. now owns 387,197 shares of the company’s stock valued at $45,693,000 after acquiring an additional 195,500 shares during the period. 86.59% of the stock is currently owned by institutional investors.

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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