Learn what Wall Street already knows in our "Billion Dollar Secret" guide.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click
OK. If you do not, click Cancel.
Back to top
Will McKesson Corporation (MCK) Beat Earnings Estimates This Quarter?
MCK IPXL BIIB
Will McKesson Corporation (? MCK - Analyst Report) Beat Earnings Estimates This Quarter McKesson Corporation ( MCK - Analyst Report) , a leading healthcare services provider, is scheduled to report first quarter fiscal 2014 results (ended Jun 30, 2013) on Jul 25, 2013.
Earnings at McKesson missed the Zacks Consensus Estimate by a penny last quarter. Let’s see how things are shaping up this quarter. Factors at Play
We note that McKesson completed its acquisition of PSS World Medical in Feb 2013. PSS World Medical was merged with McKesson’s Medical Surgical Distribution business. The addition of PSS Medical business should boost the company’s portfolio.
During the fiscal fourth quarter, McKesson undertook a comprehensive strategic review and decided to sell its 49% equity stake in Nadro S.A. de C.V., a privately-held pharmaceutical distributor in Mexico. McKesson also decided to realign its Technology Solutions segment and plans to divest its International Technology and Hospital Automation businesses.
We are impressed by the company’s efforts to realign its portfolio and focus on core profitable businesses. However, generic launches are expected to be slower in 2013 compared to 2012. Hence, we believe fiscal 2014 will be challenging for the company, given the slowdown in generics. Earnings Whispers?
Our proven model does not conclusively show that McKesson will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Read: ZACKS EARNINGS ESP: A BETTER METHOD) and a Zacks Rank #1, #2 or #3 to be able to beat Zacks Consensus Estimates. That is not the case here as you will see below. Zacks ESP: The ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at $1.74. Zacks Rank #2 (Buy): McKesson’s Zacks Rank #2 when combined with a 0.00% ESP makes us expect in-line earnings from the company this quarter.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum. Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter: Biogen Idec. ( BIIB - Analyst Report) has Earnings ESP of +2.19% and holds a Zacks Rank #3 (Hold). Actavis, Inc has Earnings ESP of +1.01% and holds a Zacks Rank #3.
Impax Laboratories Inc. ( IPXL - Analyst Report) has Earnings ESP of 33.33% and holds a Zacks Rank #3