Zacks Research Weighs in on McKesson Co.’s Q1 2024 Earnings (NYSE:MCK)

McKesson Co. (NYSE:MCK – Get Rating) – Zacks Research boosted their Q1 2024 earnings per share estimates for McKesson in a research note issued on Monday, May 22nd. Zacks Research analyst I. Bandyopadhyay now expects that the company will post earnings of $5.80 per share for the quarter, up from their prior forecast of $5.70. The consensus estimate for McKesson’s current full-year earnings is $26.61 per share. Zacks Research also issued estimates for McKesson’s Q2 2024 earnings at $6.12 EPS, Q3 2024 earnings at $6.98 EPS, Q4 2024 earnings at $7.34 EPS, FY2024 earnings at $26.24 EPS, Q1 2025 earnings at $6.91 EPS, Q2 2025 earnings at $7.50 EPS, Q3 2025 earnings at $7.74 EPS, Q4 2025 earnings at $7.71 EPS, FY2025 earnings at $29.85 EPS and FY2026 earnings at $34.05 EPS.

Several other research firms have also issued reports on MCK. Barclays increased their target price on McKesson from $415.00 to $420.00 in a research note on Tuesday, May 9th. Credit Suisse Group increased their price objective on McKesson from $430.00 to $450.00 in a report on Friday, May 12th. Citigroup assumed coverage on McKesson in a report on Friday, March 31st. They issued a “buy” rating and a $420.00 price objective on the stock. StockNews.com assumed coverage on McKesson in a research note on Thursday, May 18th. They set a “strong-buy” rating on the stock. Finally, UBS Group dropped their price target on McKesson from $450.00 to $440.00 and set a “buy” rating on the stock in a research note on Tuesday, January 31st. Two equities research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $430.17.

McKesson Stock Performance

Shares of MCK opened at $396.43 on Wednesday. The stock has a 50 day moving average price of $366.83 and a 200 day moving average price of $368.91. McKesson has a one year low of $298.69 and a one year high of $401.78. The stock has a market capitalization of $53.76 billion, a price-to-earnings ratio of 15.79, a PEG ratio of 1.38 and a beta of 0.58.

McKesson (NYSE:MCK – Get Rating) last announced its earnings results on Monday, May 8th. The company reported $7.19 earnings per share for the quarter, topping the consensus estimate of $7.16 by $0.03. McKesson had a negative return on equity of 234.22% and a net margin of 1.29%. The business had revenue of $68.91 billion during the quarter, compared to the consensus estimate of $67.94 billion. During the same period in the prior year, the company posted $5.83 EPS. The business’s quarterly revenue was up 4.2% on a year-over-year basis.

McKesson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 3rd. Investors of record on Thursday, June 1st will be issued a dividend of $0.54 per share. The ex-dividend date is Wednesday, May 31st. This represents a $2.16 annualized dividend and a yield of 0.54%. McKesson’s dividend payout ratio is presently 8.60%.

Insider Buying and Selling

In related news, CEO Brian S. Tyler sold 18,542 shares of McKesson stock in a transaction on Wednesday, May 10th. The stock was sold at an average price of $386.04, for a total transaction of $7,157,953.68. Following the completion of the transaction, the chief executive officer now directly owns 75,737 shares of the company’s stock, valued at $29,237,511.48. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On McKesson

Hedge funds and other institutional investors have recently made changes to their positions in the business. Covestor Ltd grew its position in shares of McKesson by 72.3% in the first quarter. Covestor Ltd now owns 81 shares of the company’s stock valued at $25,000 after purchasing an additional 34 shares during the period. Column Capital Advisors LLC grew its position in shares of McKesson by 189.3% in the fourth quarter. Column Capital Advisors LLC now owns 81 shares of the company’s stock valued at $30,000 after purchasing an additional 53 shares during the period. Carmel Capital Partners LLC purchased a new stake in shares of McKesson in the first quarter valued at $30,000. Live Oak Investment Partners purchased a new stake in shares of McKesson in the fourth quarter valued at $30,000. Finally, Machina Capital S.A.S. purchased a new stake in McKesson during the first quarter valued at about $33,000. Hedge funds and other institutional investors own 85.23% of the company’s stock.

About McKesson

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McKesson Corp. engages in the provision of supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. It operates through the following segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS).