UPDATE: McKesson Posts Upbeat FQ1 Profit, Lifts Earnings Forecast

McKesson MCK reported stronger-than-expected fiscal first-quarter profit and lifted its full-year fiscal 2015 earnings forecast. The San Francisco, California-based company's profit from continuing operations fell to $425 million, or $1.78 per share, versus $428 million, or $1.84 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings climbed 18% to $2.49 per share. Its sales rose 37% to $44.1 billion. However, analysts were expecting earnings of $2.34 per share on revenue of $40.95 billion. Distribution Solutions revenue rose 38% to $43.3 billion, while International pharmaceutical distribution and services revenue climbed 3% to $7.6 billion. Medical-Surgical distribution and services revenue increased 2%, while Technology Solutions revenue declined 8% in the quarter. For the fiscal year ending March 31, 2015, McKesson now expects adjusted earnings of $10.50 to $10.90 per share, versus analysts' estimates of $10.65 per share. “McKesson fiscal first quarter results represent a strong start to the year with solid execution across our business and particularly strong growth in our Distribution Solutions segment,” said John H. Hammergren, chairman and chief executive officer. McKesson shares gained 0.08% to close at $191.25 yesterday.