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McKesson Corp. Reports Operating Results (10-Q)

January 30, 2012 | About:
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10qk

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McKesson Corp. (MCK) filed Quarterly Report for the period ended 2011-12-31.

Mckesson Corp. has a market cap of $19.48 billion; its shares were traded at around $79.31 with a P/E ratio of 13.96 and P/S ratio of 0.17. The dividend yield of Mckesson Corp. stocks is 1.01%. 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 third quarter of 2012 increased 9% to $30.8 billion and for the first nine months of 2012 increased 9% to $91.0 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).

Diluted earnings per common share from continuing operations for the third quarter of 2012 increased 100% to $1.20, and for the first nine months of 2012 increased 30% to $3.51 compared to the same periods a year ago. Diluted earnings per common share for the third quarter of 2012 increased 100% to $1.20 and for the first nine months of 2012 increased 19% to $3.51 compared to the same periods a year ago. Diluted earnings per common share for the first nine months of 2011 includes $0.27 from 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.

Operating profit includes AWP litigation charges of $27 million and $145 million for the third quarter and first nine months of 2012 and $189 million and $213 million for the third quarter and first nine months of 2011. Operating profit for the first nine months of 2011 includes the receipt of $51 million representing our share of a settlement of an antitrust class action lawsuit brought against a drug manufacturer.

Operating profit margin for our Distribution Solutions segment increased for the third quarter and first nine months of 2012 primarily due to higher gross profit margin and lower operating expenses as a percentage of revenue. Gross profit margin for the first nine months of 2011 includes the receipt of $51 million representing our share of a settlement of an antitrust class action lawsuit brought against a drug manufacturer. Operating expenses as a percentage of revenue were impacted by AWP litigation charges of $27 million and $145 million for the third quarter and first nine months of 2012 and $189 million and $213 million for the third quarter and first nine months of 2011.

Net Income: Net income was $300 million and $155 million for the third quarters of 2012 and 2011, or $1.20 and $0.60 per diluted common share. Net income was $882 million and $780 million for the first nine months of 2012 and 2011, or $3.51 and $2.96 per diluted common share. Net income and diluted earnings per common share include a gain of $72 million, or $0.27 per diluted share, for the first nine months of 2011 related to our sale of MAP.

Read the The complete Report

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10qk
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