McKesson reported solid financial performance in the third quarter of fiscal 2024, with total revenues of $80.9 billion and adjusted earnings per diluted share of $7.74, both growing by double-digits compared to the prior year.
The company raised and narrowed its guidance range for fiscal 2024 adjusted earnings per diluted share from $26.80-$27.40 to an updated range of $27.25-$27.65.
McKesson's U.S. pharmaceutical segment showed strong momentum, with adjusted operating profit growing 6% and volume increases across customer channels, including specialty pharmaceuticals and GLP-1 medications.
The U.S. Oncology Network expanded its footprint by entering Tennessee and now has over 2,500 providers spread across nearly 600 sites in 30 states. The network is leveraging artificial intelligence capabilities to assist providers with revenue cycle management and clinical solutions.
The Prescription Technology Solution segment delivered strong performance, driven by growth in access solutions such as prior authorization services for branded pharmaceuticals like GLP-1 medications. The company expects a successful blizzard season, which is typically the busiest time of year for this segment.
McKesson provided an initial outlook for fiscal 2025, anticipating continued strength and stability in the underlying fundamentals of the business, with growth aligned to long-term targets in the U.S. pharmaceutical and Medical-Surgical Solutions segments, potential above-target growth in the Prescription Technology Solution segment, and continued growth in Canadian operations. The company plans to sustain investments in product development, distribution capacity, and data analytics, including artificial intelligence.
Undervalued by 7.3% based on the discounted cash flow analysis.
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About Mckesson Corporation
CEO: Brian Tyler
McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. McKesson partners with pharmaceutical manufacturers, p...