Medical Supplies-Focused McKesson Shares Fall On Q3 Earnings Performance, Analyst Says Street 'Wanted More'
Portfolio Pulse from Vandana Singh
McKesson Corporation (NYSE:MCK) reported Q3 2024 sales of $80.9 billion, a 15% increase, surpassing the consensus of $77.86 billion, primarily due to growth in the U.S. Pharmaceutical segment. Adjusted EPS was $7.74, up 12% Y/Y, beating the consensus of $7.05. The company revised its FY 2024 adjusted EPS outlook to $27.25-$27.65. Despite positive results and raised price targets by Baird and Citigroup, MCK shares fell 5.22% to $490.00.

February 08, 2024 | 7:30 pm
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McKesson reported strong Q3 2024 results with sales and EPS beating consensus, driven by U.S. Pharmaceutical growth. Adjusted EPS outlook for FY 2024 was revised upwards. Despite this, shares fell 5.22% to $490.00.
Despite McKesson's strong Q3 performance and positive revisions to its FY 2024 EPS outlook, the market reaction was negative, leading to a 5.22% drop in its share price. This could be due to high expectations already priced in or concerns not addressed by the earnings report. Analysts remain optimistic, suggesting the drop might be a short-term reaction.
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