McKesson Corp (MCK) Reports 10% Revenue Growth in Q2 Fiscal 2024 and Raises Full-Year Guidance
McKesson Corp (NYSE:MCK) reported a 10% increase in total revenues, reaching $77.2 billion in Q2 of fiscal 2024.
Earnings per diluted share from continuing operations decreased by $1.54 to $4.92, while adjusted earnings per diluted share increased by 3% to $6.23.
The company raised its fiscal 2024 Adjusted Earnings per Diluted Share guidance range to $26.80 to $27.40, up from the previous range of $26.55 to $27.35.
McKesson Corp (NYSE:MCK) does not forecast GAAP earnings per diluted share from continuing operations.
McKesson Corp (NYSE:MCK) released its earnings report for the second quarter ended September 30, 2023, on November 1, 2023. The company reported total revenues of $77.2 billion, marking a 10% increase from the same period last year. Despite a decrease in earnings per diluted share from continuing operations, which fell by $1.54 to $4.92, the company's adjusted earnings per diluted share saw a 3% increase, reaching $6.23.
Financial Performance
McKesson Corp (NYSE:MCK) reported a decrease in income from continuing operations, which fell by 29% to $664 million. However, the company's adjusted earnings increased by 6% to $1.834 billion. The company's earnings per diluted share from continuing operations decreased by 24% to $4.92, while its adjusted earnings per diluted share increased by 14% to $13.51.
Company Highlights and Challenges
McKesson Corp (NYSE:MCK) faced challenges in the second quarter, including a pre-tax provision for bad debts of $210 million within the U.S. Pharmaceutical segment for uncollected trade accounts receivable related to the bankruptcy of Rite Aid Corporation. Despite these challenges, the company saw growth in the Prescription Technology Solutions and U.S. Pharmaceutical segments, which was partially offset by a higher tax rate.
Outlook for Fiscal 2024
Based on its performance in the first half of the fiscal year and its outlook for the remainder of the year, McKesson Corp (NYSE:MCK) has increased its fiscal 2024 Adjusted Earnings per Diluted Share guidance range to $26.80 to $27.40, up from the previous range of $26.55 to $27.35. This guidance indicates a forecasted growth of 14% to 17% compared to the prior year.
Key Financial Tables
McKesson Corp (NYSE:MCK) reported revenues of $77.2 billion, an increase of 10% from a year ago. The company's income from continuing operations decreased by 29% to $664 million, while its adjusted earnings increased by 6% to $1.834 billion. Earnings per diluted share from continuing operations decreased by 24% to $4.92, while adjusted earnings per diluted share increased by 14% to $13.51.
Company's Performance Analysis
Despite facing challenges in the second quarter, McKesson Corp (NYSE:MCK) demonstrated resilience and adaptability, delivering results above expectations. The company's continued strength in its oncology and biopharma services platforms positions it to deliver sustainable growth and compelling long-term shareholder value. The company's decision to raise its guidance range for fiscal 2024 Adjusted Earnings per Diluted Share reflects its confidence in its performance and outlook for the remainder of the year.
Explore the complete 8-K earnings release (here) from McKesson Corp for further details.
This article first appeared on GuruFocus.
