Irving, Texas-based McKesson Corporation (MCK) is a healthcare services and information technology company that provides pharmaceuticals, medical supplies, and healthcare technology solutions. Valued at a market cap of $86.8 billion, the company also offers data-driven services and automation solutions aimed at improving healthcare efficiency, patient safety, and overall outcomes. It is expected to announce its fiscal Q4 earnings for 2025 after the market closes on Thursday, May 8.
Prior to this event, analysts project this healthcare company to report a profit of $9.81 per share, up 58.7% from $6.18 per share in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in two of the last four quarters, while missing on two other occasions. Its earnings of $8.03 per share in the previous quarter fell short of the consensus estimates marginally.
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For the full year, analysts expect MCK to report EPS of $32.76, up 19.4% from $27.44 in fiscal 2024. Furthermore, its EPS is expected to grow 11.7% year over year to $36.58 in fiscal 2026.
MCK has rallied 30.1% over the past 52 weeks, considerably outperforming both the S&P 500 Index's ($SPX) 6% rise, and the Health Care Select Sector SPDR Fund’s (XLV) 3.9% downtick over the same time frame.
On Feb. 5, MCK delivered its weaker-than-expected Q3 results, prompting a 1.2% decline in its share price the following day. The company’s revenue improved by 17.8% from the year-ago quarter, reaching $95.3 billion, but came in slightly below consensus estimates. The shortfall was mainly due to lower revenue from the medical-surgical solutions segment, driven by reduced demand for illness season vaccines. Moreover, its adjusted earnings grew 3.7% year-over-year to $8.03 per share but still came in just below Wall Street expectations, further adding to the downtick.
Wall Street analysts are highly optimistic about MCK’s stock, with a "Strong Buy" rating overall. Among 17 analysts covering the stock, 13 recommend "Strong Buy," and four suggest “Hold.” The mean price target for MCK is $722, which indicates a 4.3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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