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McKesson Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 25, 2011 04:38PM

McKesson Corp. (MCK) filed Quarterly Report for the period ended 2011-09-30. Mckesson Corp. has a market cap of $18.95 billion; its shares were traded at around $76.94 with a P/E ratio of 15.2 and P/S ratio of 0.2. The dividend yield of Mckesson Corp. stocks is 1%. Mckesson Corp. had an annual average earning growth of 11.5% over the past 10 years. GuruFocus rated Mckesson Corp. the business predictability rank of 3.5-star.



Highlight of Business Operations:

Revenues for the second quarter of 2012 increased 10% to $30.2 billion and for the first six months of 2012 increased 9% to $60.2 billion compared to the same periods a year ago. The increases in revenues primarily reflect market growth in our Distribution Solutions segment, which accounted for approximately 97% of our consolidated revenues. Additionally, revenues for 2012 benefited from our December 30, 2010 acquisition of US Oncology Holdings, Inc. (“US Oncology”).

Income from continuing operations for the second quarter of 2012 increased 16% to $296 million and for the first six months of 2012 increased 5% to $582 million compared to the same periods a year ago. Income from continuing operations for 2012 and 2011 was negatively impacted by our Average Wholesale Price (“AWP”) litigation charges of $118 million and $24 million and, in 2011, a $72 million asset impairment charge for capitalized software held for sale. For the first six months of 2011 these charges were partially offset by the receipt of $51 million representing our share of a settlement of an antitrust class action lawsuit brought against a drug manufacturer.

Diluted earnings per common share from continuing operations for the second quarter of 2012 increased 22% to $1.18 and for the first six months of 2012 increased 12% to $2.31 compared to the same periods a year ago. Diluted earnings per common share for the second quarter of 2012 decreased 6% to $1.18 and for the first six months of 2012 decreased 1% to $2.31 compared to the same periods a year ago. Diluted earnings per common share includes $0.28 for the second quarter of 2011 and $0.27 for the first six months of 2011 for the gain on the sale of MAP. Additionally, diluted earnings per common share for 2012 benefited from the repurchase of our common stock during the last twelve months.

Net Income: Net income was $296 million and $327 million for the second quarters of 2012 and 2011, or $1.18 and $1.25 per diluted common share. Net income was $582 million and $625 million for the first six months of 2012 and 2011, or $2.31 and $2.34 per diluted common share. Net income and diluted earnings per common share include a gain of $72 million, or $0.28 and $0.27 per diluted share, for the second quarter and first six months of 2011 related to our sale of MAP.

Operating activities provided cash of $1,395 million and $798 million during the first six months of 2012 and 2011. Cash flows from operations can be significantly impacted by factors such as the timing of receipts from customers, inventory receipts and payments to vendors. Operating activities for 2012 and 2011 include non-cash charges of $118 million and $24 million for the AWP litigation and, for 2011, $72 million for an asset impairment of software held for sale.

Read the The complete Report



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