Here's What Key Metrics Tell Us About McKesson (MCK) Q3 Earnings

McKesson (MCK) reported $80.9 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 14.8%. EPS of $7.74 for the same period compares to $6.90 a year ago.

The reported revenue represents a surprise of +4.41% over the Zacks Consensus Estimate of $77.48 billion. With the consensus EPS estimate being $7.05, the EPS surprise was +9.79%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how McKesson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- U.S. Pharmaceutical: $73.02 billion compared to the $69.64 billion average estimate based on three analysts. The reported number represents a change of +17.9% year over year.
  • Revenue- Prescription Technology Solutions: $1.21 billion compared to the $1.19 billion average estimate based on three analysts.
  • Revenue- International: $3.64 billion compared to the $3.66 billion average estimate based on three analysts. The reported number represents a change of -18.2% year over year.
  • Revenue- Medical-Surgical Solutions: $3.03 billion compared to the $2.96 billion average estimate based on three analysts. The reported number represents a change of +1.5% year over year.
  • Adjusted Operating Profit- U.S. Pharmaceutical: $828 million versus $836.84 million estimated by three analysts on average.
  • Adjusted Operating Profit- Prescription Technology Solutions: $193 million compared to the $173.27 million average estimate based on three analysts.
  • Adjusted Operating Profit- Corporate: -$147 million versus the three-analyst average estimate of -$156.15 million.
  • Adjusted Operating Profit- International: $105 million versus $106.77 million estimated by three analysts on average.
  • Adjusted Operating Profit- Medical-Surgical Solutions: $282 million versus the three-analyst average estimate of $283.46 million.
View all Key Company Metrics for McKesson here>>>

Shares of McKesson have returned +5.4% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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