Earnings Preview: McKesson Corporation

| About: McKesson Corporation (MCK)

McKesson Corporation (NYSE:MCK) is expected to report Q1 earnings after market close Wednesday, July 23, with a conference call scheduled for 5:00 p.m. ET.


Analysts are looking for a profit of 80c on revenue of $26.03B. The consensus is 79c to 82c for EPS, and revenue of $25.44B to $26.48B, according to First Call. Positive drivers for this earnings period include strength in its distribution business and more accretion from the 2007 acquisition of Oncology Therapeutics Network. The major risk to earnings this period is the lower prices of generics coming to market.

Analyst Views

On June 20, Deutsche Bank noted investors should look to add to positions in McKesson given the recent weakness as the stock remains its top pick in the Pharma Distribution space. The firm maintains a Buy rating, and $78 target on the shares. Leerink Swann noted investors underappreciated the company's cash flow generation in the Distribution Solutions segment and growth potential of the Technology Solutions business. The firm views valuation as compelling.

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