Healthcare distributor and services company McKesson (NYSE: MCK) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
McKesson beat analysts’ revenue expectations last quarter, reporting revenues of $105.4 billion, up 7.7% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates.
Is McKesson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting McKesson’s revenue to grow 6.7% year on year, slowing from the 10.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. McKesson has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at McKesson’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Elevance Health posted flat year-on-year revenue, beating analysts’ expectations by 3.1%, and BrightSpring Health Services reported revenues up 26.4%, topping estimates by 8.9%. Elevance Health traded up 1.2% following the results while BrightSpring Health Services was also up 10.1%.
Read our full analysis of Elevance Health’s results here and BrightSpring Health Services’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 2.4% on average over the last month. McKesson is up 8.9% during the same time and is heading into earnings with an average analyst price target of $1,026 (compared to the current share price of $997.00).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
