Summary
McKesson Corporation (MCK) announced a strategic growth initiative on April 25, 2018, aimed at enhancing patient care delivery and driving profit growth. As part of this initiative, the company is undertaking a restructuring plan to optimize its operating model and cost structure, primarily impacting information technology, finance, and human resources. This restructuring is expected to be substantially completed before the end of the fiscal year ending March 31, 2019. Investors should note that McKesson anticipates incurring after-tax charges between $150 million and $210 million during the fiscal year ending March 31, 2019, primarily related to employee severance, exit costs, and other related expenses. While this represents an estimate, the company acknowledges that actual charges could deviate from this range. Additionally, the company reaffirmed its adjusted earnings per diluted share (EPS) guidance for the fiscal year ended March 31, 2018, and provided preliminary guidance for the upcoming fiscal year.
Key Highlights
- 1McKesson is initiating a strategic growth initiative focused on improving patient care and profitability.
- 2A restructuring plan is being implemented to optimize operating model and cost structure across IT, finance, and HR.
- 3The restructuring is expected to be largely completed by March 31, 2019.
- 4The company estimates incurring after-tax charges of $150 million to $210 million for the fiscal year ending March 31, 2019, due to the restructuring.
- 5These charges will primarily cover employee severance, exit-related costs, and other related expenses.
- 6McKesson reaffirmed its adjusted EPS guidance for the fiscal year ended March 31, 2018.
- 7Preliminary adjusted EPS guidance for the fiscal year ending March 31, 2019, was also provided.