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McKesson First Quarter Earnings
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McKesson (NYSE:MCK) announced its results for the most recent quarter on July 26, 2012. McKesson delivers cost-reducing medicines, pharmaceutical supplies, information, and care management products and services.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings
The Numbers: McKesson's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported $1.58 per share versus the $1.49 per share estimate and revenues of $30.8 billion versus the $31.06 billion estimate. EPS rose 39.8% while revenue climbed 2.7% from the same period last year. McKesson's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter was $380 million. According to the reported number, this is up 32.9% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "I am pleased with McKesson's first-quarter financial results," said John H. Hammergren, chairman and chief executive officer. "Our results this quarter represent a solid start to our fiscal year and we continue to expect that McKesson should achieve Adjusted Earnings per diluted share of $7.05 to $7.35."
A Look Back: Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margins grew to 5.2%, up 0.2 percentage point from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.2 percentage point to 5.8% from the year earlier quarter.
Net income has increased 27.3% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 93.5% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for second quarter has fallen from $1.78 per share to $1.77. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $7.23 per share, a rise from $7.18 90 days ago.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings
The Numbers: McKesson's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported $1.58 per share versus the $1.49 per share estimate and revenues of $30.8 billion versus the $31.06 billion estimate. EPS rose 39.8% while revenue climbed 2.7% from the same period last year. McKesson's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter was $380 million. According to the reported number, this is up 32.9% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "I am pleased with McKesson's first-quarter financial results," said John H. Hammergren, chairman and chief executive officer. "Our results this quarter represent a solid start to our fiscal year and we continue to expect that McKesson should achieve Adjusted Earnings per diluted share of $7.05 to $7.35."
A Look Back: Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margins grew to 5.2%, up 0.2 percentage point from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.2 percentage point to 5.8% from the year earlier quarter.
Net income has increased 27.3% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 93.5% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for second quarter has fallen from $1.78 per share to $1.77. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $7.23 per share, a rise from $7.18 90 days ago.
by
Investopedia Staff
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