McKesson Posts Better Than Expected Q2 Earnings; Raises FY22 EPS Outlook Again

McKesson Corp MCK reported second-quarter FY22 adjusted EPS of $6.15, +28% Y/Y, and easily beating the analyst consensus of $4.66.
Revenues increased 9% Y/Y to $66.57 billion, surpassing the consensus of $63.12 billion, driven by growth in the U.S. Pharmaceutical segment, primarily due to increased specialty volumes and market growth, partially offset by branded to generic conversions.
U.S. Pharmaceutical Segment revenues increased 11% to $53.4 billion.
Prescription Technology Solutions Segment revenues increased 40% to $932 million, driven by higher volumes of technology and service offerings.
Medical-Surgical Solutions revenues improved 23% to $3.1 billion, driven by increased sales of COVID-19 tests and growth in the primary care business.
Adjusted gross profit margin remained almost unchanged at 5%.
Outlook: McKesson increased FY22 adjusted EPS to $21.95 - $22.55 (consensus of $20.32) from previous guidance of $19.80 - $20.40 to reflect strong operating performance and increased contribution from the U.S. government's COVID-19 vaccine programs.
Guidance assumes $1.30 - $1.80 adjusted EPS related to the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs and $0.50 - $0.75 pertaining to COVID-19 tests, impairments for personal protective equipment & related products.
Price Action: MCK shares closed 0.10% higher at $208.08 on Monday.

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