Summary
McKesson Corporation's (MCK) third-quarter fiscal year 2022 results (ending December 30, 2021) show a return to profitability after a significant loss in the prior year period, driven by revenue growth across its segments. Total revenues increased by 10% year-over-year, reflecting strong performance in the U.S. Pharmaceutical segment and recovery from pandemic-related impacts. The company's net income attributable to McKesson Corporation swung from a substantial loss to a profit, though diluted EPS from continuing operations was slightly negative due to specific charges. Significant factors influencing the quarter include the ongoing divestiture of European businesses, which resulted in substantial remeasurement charges impacting operating expenses, and continued progress in settling opioid-related litigation, with an estimated liability of $8.2 billion. Despite these complexities, McKesson demonstrated robust operational execution and a strong recovery trajectory.
Financial Highlights
53 data points| Revenue | $68.61B |
| Cost of Revenue | $65.19B |
| Gross Profit | $3.43B |
| SG&A Expenses | $3.10B |
| Operating Expenses | $3.13B |
| Operating Income | $298.00M |
| Interest Expense | $41.00M |
| Net Income | -$7.00M |
| EPS (Basic) | $-0.04 |
| EPS (Diluted) | $-0.04 |
| Shares Outstanding (Basic) | 151.60M |
| Shares Outstanding (Diluted) | 151.60M |
Key Highlights
- 1Revenues increased by 10% year-over-year to $68.6 billion for the quarter, primarily driven by the U.S. Pharmaceutical segment.
- 2Net income attributable to McKesson Corporation turned positive at $746 million for the nine months ended December 31, 2021, compared to a loss of $5.2 billion in the prior year period.
- 3The company is actively divesting its European businesses, with significant assets and liabilities classified as 'held for sale,' leading to substantial remeasurement charges impacting operating expenses.
- 4Opioid-related litigation remains a major factor, with an estimated total liability of $8.2 billion as of December 31, 2021, and additional charges of $193 million recorded during the nine-month period.
- 5Shareholder returns remained a focus, with $2.2 billion returned through repurchases ($2.0 billion) and dividends ($206 million) in the nine months ended December 31, 2021, and an increased quarterly dividend declared.
- 6The company continues to play a crucial role in distributing COVID-19 vaccines and ancillary supplies, contributing positively to revenue and operating profit in its Medical-Surgical Solutions and U.S. Pharmaceutical segments.