Summary
McKesson Corporation's third-quarter and nine-month results for the period ending December 31, 2012, show modest revenue growth, with revenues increasing by 1% for both the quarter and the first nine months compared to the prior year. Net income for the nine-month period saw a significant 22% increase to $1,079 million, while the third quarter experienced a slight 1% decrease to $298 million. Diluted earnings per share for the nine-month period rose substantially by 28% to $4.49, indicating improved profitability on a year-to-date basis. The company is actively pursuing strategic growth through acquisitions, notably the pending $2.1 billion acquisition of PSS World Medical, Inc., and the recently completed $925 million acquisition of Katz Group's Canadian assets. These moves are expected to bolster the Distribution Solutions segment. McKesson also continues its share repurchase program, demonstrating a commitment to returning value to shareholders.
Financial Highlights
52 data points| Revenue | $31.10B |
| Cost of Revenue | $29.45B |
| Gross Profit | $1.65B |
| Operating Expenses | $1.15B |
| Operating Income | $498.00M |
| Net Income | $298.00M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.24 |
| Shares Outstanding (Basic) | 235.00M |
| Shares Outstanding (Diluted) | 240.00M |
Key Highlights
- 1Revenues grew by 1% for both the quarter and nine-month period, reaching $31.2 billion and $91.8 billion, respectively.
- 2Net income for the nine months ended December 31, 2012, increased by 22% to $1,079 million, driven by growth in the Distribution Solutions segment and a gain on business combination.
- 3Diluted Earnings Per Share (EPS) for the nine-month period increased significantly by 28% to $4.49, indicating strong operational performance.
- 4McKesson announced a definitive agreement to acquire PSS World Medical, Inc. for approximately $2.1 billion, signaling a strategic move to expand its medical-surgical distribution services.
- 5The company completed the acquisition of Katz Group's Canadian assets for $925 million, strengthening its presence in the Canadian pharmaceutical distribution market.
- 6The share repurchase program remains active, with authorized repurchases totaling $640 million at the end of the period, demonstrating capital return to shareholders.
- 7The company is managing significant litigation and government investigations, with substantial charges incurred in the prior year related to AWP litigation, and new charges related to a Canadian legal dispute.