We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McKesson (MCK) to Report Q4 Earnings: What's in the Offing?
Read MoreHide Full Article
McKesson Corporation’s (MCK - Free Report) fourth-quarter fiscal 2021 results are scheduled to release on May 6, before the opening bell.
The company delivered an earnings surprise of 11.4% in the last reported quarter. Further, it beat estimates in each of the trailing four quarters, the average surprise being 14.4%.
Q4 Estimates
The Zacks Consensus Estimate for McKesson’s fiscal fourth-quarter earnings per share is pegged at $5.01, suggesting growth of 17.3% from the prior-year quarter. The same for revenues stands at $60.91 billion, indicating an improvement of 4.1% from the year-ago reported figure.
Factors to Note
McKesson expects fiscal fourth-quarter results to reflect segmental strength.
The U.S. Pharmaceutical and Specialty Solutions segment might have acted as a key catalyst in the quarter to be reported. In fact, the consensus mark for this segment’s revenues is pegged at $48.26 billion, indicating an improvement of 4.3% from the prior-year quarter.
Notably, the segment may have benefited from branded pharmaceutical price increases and higher volumes from retail national account customers in the to-be-reported quarter. However, branded to generic conversions might have weighed on the segment’s performance. Nonetheless, the company’s broad spectrum of specialty biopharmaceutical providers and manufacturers is expected to have contributed to the fiscal fourth-quarter performance.
Growing demand for COVID-19 tests and personal protective equipment (PPE) in the Primary Care and Extended businesses is likely to have favored the company’s Medical-Surgical solutions segment.
In fact, the consensus mark for this segment’s revenues is pegged at $3.18 billion, indicating an improvement of 44.3% from the prior-year quarter.
In December 2020, McKesson started to distribute Moderna's COVID-19 vaccine within 48 hours of its Emergency Use Authorization (EUA) approval by the FDA as it is within the scope of its contract with Centers for Disease Control and Prevention.
Further, throughout January, McKesson managed to successfully distribute above 25 million doses of the COVID-19 vaccine to sites across the country. From the distribution standpoint, the company remains on track to meet the US government's plan to distribute hundreds of millions of refrigerated and frozen vaccines.
These positive developments may get reflected in the fiscal fourth-quarter results.
However, McKesson is likely to have witnessed a decline in revenues at its International segment in the fiscal fourth quarter due to the contribution of McKesson’s German wholesale business to a joint venture with Walgreens Boots Alliance.
What the Zacks Model Unveils
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s the case here.
Earnings ESP: McKesson has an Earnings ESP of +0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +11.36% and a Zacks Rank of 2.
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
McKesson (MCK) to Report Q4 Earnings: What's in the Offing?
McKesson Corporation’s (MCK - Free Report) fourth-quarter fiscal 2021 results are scheduled to release on May 6, before the opening bell.
The company delivered an earnings surprise of 11.4% in the last reported quarter. Further, it beat estimates in each of the trailing four quarters, the average surprise being 14.4%.
Q4 Estimates
The Zacks Consensus Estimate for McKesson’s fiscal fourth-quarter earnings per share is pegged at $5.01, suggesting growth of 17.3% from the prior-year quarter. The same for revenues stands at $60.91 billion, indicating an improvement of 4.1% from the year-ago reported figure.
Factors to Note
McKesson expects fiscal fourth-quarter results to reflect segmental strength.
The U.S. Pharmaceutical and Specialty Solutions segment might have acted as a key catalyst in the quarter to be reported. In fact, the consensus mark for this segment’s revenues is pegged at $48.26 billion, indicating an improvement of 4.3% from the prior-year quarter.
McKesson Corporation Price and EPS Surprise
McKesson Corporation price-eps-surprise | McKesson Corporation Quote
Notably, the segment may have benefited from branded pharmaceutical price increases and higher volumes from retail national account customers in the to-be-reported quarter. However, branded to generic conversions might have weighed on the segment’s performance. Nonetheless, the company’s broad spectrum of specialty biopharmaceutical providers and manufacturers is expected to have contributed to the fiscal fourth-quarter performance.
Growing demand for COVID-19 tests and personal protective equipment (PPE) in the Primary Care and Extended businesses is likely to have favored the company’s Medical-Surgical solutions segment.
In fact, the consensus mark for this segment’s revenues is pegged at $3.18 billion, indicating an improvement of 44.3% from the prior-year quarter.
In December 2020, McKesson started to distribute Moderna's COVID-19 vaccine within 48 hours of its Emergency Use Authorization (EUA) approval by the FDA as it is within the scope of its contract with Centers for Disease Control and Prevention.
Further, throughout January, McKesson managed to successfully distribute above 25 million doses of the COVID-19 vaccine to sites across the country. From the distribution standpoint, the company remains on track to meet the US government's plan to distribute hundreds of millions of refrigerated and frozen vaccines.
These positive developments may get reflected in the fiscal fourth-quarter results.
However, McKesson is likely to have witnessed a decline in revenues at its International segment in the fiscal fourth quarter due to the contribution of McKesson’s German wholesale business to a joint venture with Walgreens Boots Alliance.
What the Zacks Model Unveils
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s the case here.
Earnings ESP: McKesson has an Earnings ESP of +0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +2.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +11.36% and a Zacks Rank of 2.
Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>