Healthcare distributor and services company McKesson (NYSE:MCK) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
McKesson missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $95.29 billion, up 17.8% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates.
Is McKesson a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting McKesson’s revenue to grow 24.1% year on year to $94.74 billion, improving from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.83 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McKesson has missed Wall Street’s revenue estimates three times over the last two years.
Looking at McKesson’s peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cardinal Health posted flat year-on-year revenue, missing analysts’ expectations by 1%, and Alignment Healthcare reported revenues up 47.5%, topping estimates by 4.4%. Cardinal Health traded up 5.9% following the results while Alignment Healthcare was down 7%.
Read our full analysis of Cardinal Health’s results here and Alignment Healthcare’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 5.9% on average over the last month. McKesson is up 8.9% during the same time and is heading into earnings with an average analyst price target of $709.65 (compared to the current share price of $711.07).
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