LONDON, UK / ACCESSWIRE / February 21, 2018 / Active-Investors.com has just released a free earnings report on McKesson Corp. (NYSE: MCK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MCK. The Company reported its third quarter fiscal 2018 operating and financial results on February 01, 2018. The prescription drug distributor outperformed top- and bottom-line expectations, and raised its adjusted earnings guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, McKesson most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the third quarter ended December 31, 2017, McKesson's reported revenues were $53.6 billion, up 7% compared to $50.1 billion in Q3 FY17. The Company's revenue numbers beat analysts' estimates of $51.98 billion.

On a US GAAP basis, McKesson's earnings were $903 million, or $4.32 per diluted share, for Q3 FY18 compared to $633 million, or $2.86 per diluted share, in Q3 FY17. The Company's reported quarter earnings included a net tax benefit of approximately $370 million, or $1.78 per share, driven by the Tax Cuts and Jobs Act of 2017 (TCJA).

McKesson's adjusted earnings per diluted share were $3.41 for Q3 FY18, up 12% compared to $3.04 in Q3 FY17. The Company's reported quarter results were driven by a lower share count; an organic growth across multiple business units, including the Company's strategic sourcing benefits through ClarusONE; an incremental profit contribution from acquisitions; and a lower tax rate. McKesson's earnings numbers exceeded Wall Street's estimates of $2.92 per share.

Segment Results

During Q3 FY18, McKesson's Distribution Solutions segment's revenues were $53.62 billion, up 8% on a reported basis. In the reported quarter, the segment's GAAP operating profit was $819 million and GAAP operating margin was 1.53%. The segment's adjusted operating profit was $991 million in Q3 FY18, up 23% on a reported basis from the prior year's same quarter.

Within the Distribution Solutions segment, the North America Pharmaceutical Distribution and Services sub-segment recorded revenues of $44.9 billion, up 8% on a reported basis, primarily reflecting market growth and acquisitions. The Distribution Solutions segment's International Pharmaceutical Distribution and Services sub-segment's revenues jumped 13% to $7.0 billion on a y-o-y basis, driven by acquisitions and market growth. The segment's Medical-Surgical Distribution and Services sub-segment's revenues were $1.7 billion for Q3 FY18, up 9%, primarily driven by market growth.

Cash Matters

For the first nine months of the fiscal year 2018, McKesson generated cash from operations of $1.3 billion, and ended the quarter with a cash and cash equivalents balance of $2.6 billion. Through the first nine months of FY18, the Company repaid $545 million in long-term debt; paid $2.0 billion for acquisitions; repurchased $900 million of its common stock; invested $392 million internally; and paid $192 million in dividends.

McKesson's Board of Directors declared a regular dividend of $0.34 per share of common stock. The dividend will be payable on April 02, 2018, to stockholders of record as on March 01, 2018.

Fiscal Year 2018 Outlook

For the fiscal year ending March 31, 2018, McKesson expects GAAP earnings per diluted share of $7.65 to $9.00, including amortization of acquisition-related intangibles of $2.35 to $2.65 per diluted share, and acquisition-related expenses and adjustments of $1.00 to $1.20 per diluted share.

For FY18, McKesson raised and narrowed its adjusted earnings per diluted share outlook from a band of $11.80 to $12.50 to a new range of $12.50 to $12.80, as a result of the lower tax rate and share count.

Stock Performance Snapshot

February 20, 2018 - At Tuesday's closing bell, McKesson's stock declined 1.10%, ending the trading session at $148.85.

Volume traded for the day: 1.07 million shares.

Stock performance in the last three-month ? up 4.31%; and previous six-month period ? up 1.95%

After yesterday's close, McKesson's market cap was at $30.66 billion.

Price to Earnings (P/E) ratio was at 7.16.

The stock has a dividend yield of 0.91%.

The stock is part of the Services sector, categorized under the Drugs Wholesale industry.

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