Earnings To Watch: McKesson (MCK) Reports Q4 Results Tomorrow

Healthcare distributor and services company McKesson (NYSE:MCK) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.

McKesson missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $103.2 billion, up 10.1% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

Is McKesson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting McKesson’s revenue to grow 11.5% year on year to $106.2 billion, slowing from the 17.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.27 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McKesson has missed Wall Street’s revenue estimates five times over the last two years.

Looking at McKesson’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 6.7%, missing analysts’ expectations by 1%, and UnitedHealth reported revenues up 12.3%, in line with consensus estimates. HCA Healthcare traded up 4% following the results while UnitedHealth was down 16.4%.

Read our full analysis of HCA Healthcare’s results here and UnitedHealth’s results here.

Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. McKesson is up 2.6% during the same time and is heading into earnings with an average analyst price target of $945.33 (compared to the current share price of $846.48).

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