McKesson Up 5% After Earnings Beat

Shares of McKesson MCK are up more than 5% today after the company reported positive earnings yesterday. The company reported that revenues for the third quarter ended December 31, 2011 were up 9% to $30.8 billion compared to $28.2 billion a year ago. On the basis of U.S. generally accepted accounting principles, third-quarter earnings per diluted share was $1.20 compared to $0.60 a year ago. Third-quarter GAAP results included a pre-tax charge of $27 million, recorded in the Distribution Solutions segment, to increase an existing litigation reserve for claims against McKesson relating to First DataBank's published drug reimbursement benchmarks, commonly referred to as Average Wholesale Prices. Last year's third-quarter GAAP results also included a pre-tax AWP litigation charge of $189 million.