Healthcare distributor and services company McKesson (NYSE: MCK) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
McKesson beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $97.83 billion, up 23.4% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ revenue estimates.
Is McKesson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting McKesson’s revenue to grow 11.2% year on year to $104.1 billion, slowing from the 21.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.05 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 four times over the last two years.
Looking at McKesson’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cardinal Health delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 7.8%, and Guardant Health reported revenues up 38.5%, topping estimates by 12.6%. Cardinal Health traded up 15.9% following the results while Guardant Health was also up 27.9%.
Read our full analysis of Cardinal Health’s results here and Guardant Health’s results here.
Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. McKesson is up 10.8% during the same time and is heading into earnings with an average analyst price target of $844.57 (compared to the current share price of $821.27).
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