McKesson (NYSE:MCK) Releases Quarterly Earnings Results, Beats Expectations By $1.02 EPS

McKesson (NYSE:MCK) issued its earnings results on Wednesday. The company reported $9.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $8.84 by $1.02, Zacks reports. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The business had revenue of $103.15 billion for the quarter, compared to analyst estimates of $103.80 billion. During the same quarter in the prior year, the business posted $7.07 EPS. The company’s revenue for the quarter was up 10.2% on a year-over-year basis.

McKesson Stock Down 0.9%

MCK stock traded down $7.84 during trading on Friday, reaching $850.77. 619,369 shares of the company’s stock were exchanged, compared to its average volume of 848,315. McKesson has a 1-year low of $558.13 and a 1-year high of $867.63. The company’s fifty day moving average price is $757.54 and its 200-day moving average price is $724.05. The firm has a market cap of $105.82 billion, a PE ratio of 33.92, a P/E/G ratio of 1.46 and a beta of 0.51.

McKesson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be paid a dividend of $0.82 per share. The ex-dividend date of this dividend is Monday, December 1st. This represents a $3.28 annualized dividend and a yield of 0.4%. McKesson’s payout ratio is presently 10.21%.

Insider Activity at McKesson

In other news, CEO Brian S. Tyler sold 11,930 shares of the firm’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the transaction, the chief executive officer directly owned 4,012 shares of the company’s stock, valued at approximately $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On McKesson

Institutional investors and hedge funds have recently bought and sold shares of the stock. State of Wyoming bought a new stake in shares of McKesson during the 2nd quarter worth about $29,000. Osterweis Capital Management Inc. acquired a new position in shares of McKesson during the second quarter valued at approximately $166,000. Vivaldi Capital Management LP acquired a new position in shares of McKesson during the second quarter valued at approximately $205,000. Caxton Associates LLP bought a new stake in McKesson during the first quarter worth approximately $233,000. Finally, Diversify Advisory Services LLC acquired a new stake in McKesson in the second quarter worth approximately $237,000. Institutional investors own 85.07% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Zacks Research raised McKesson from a “hold” rating to a “strong-buy” rating in a report on Monday, October 27th. Wall Street Zen upgraded McKesson from a “hold” rating to a “buy” rating in a research report on Sunday, September 28th. TD Cowen boosted their price target on McKesson from $830.00 to $864.00 and gave the company a “buy” rating in a report on Wednesday, September 24th. Morgan Stanley upped their price target on McKesson from $857.00 to $916.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Jefferies Financial Group lifted their price objective on shares of McKesson from $820.00 to $900.00 and gave the stock a “buy” rating in a report on Monday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $880.15.

McKesson Company Profile

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.