McKesson Q2 Profit Up 16%, Backs 2015 Earnings Outlook

(RTTNews) - U.S. drug distributor McKesson Corp. (MCK) on Tuesday reported a 16 percent increase in profit for the second quarter from last year on strong revenue growth, including higher revenues at its Distribution Solutions unit. Looking ahead, the company affirmed its earnings outlook for fiscal 2015.

The San Francisco, California-based company's net income for the second quarter was $469 million or $1.99 per share, up from $404 million or $1.74 per share for the year-ago quarter.

Excluding items, adjusted earnings per share from continuing operations for the quarter were $2.79, compared to $2.30 in the previous-year quarter. On average, 17 analysts polled by Thomson Reuters expected the company to earn $2.73 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 36 percent to $44.76 billion from $32.99 billion in the same quarter last year. Analysts had a consensus revenue estimate of $42.99 billion for the fourth quarter.

Revenue for the company's distribution solutions segment surged 37 percent year-over-year to $44 billion, mainly driven by the contribution from the company's acquisition of Celesio and market growth.

North America pharmaceutical distribution and services revenues, which include results from U.S. Pharmaceutical, McKesson Canada and McKesson Specialty Health, increased 14 percent.

International pharmaceutical distribution and services revenues, rose 4 percent on the underlying results of Celesio on a constant currency basis. Medical-Surgical distribution and services revenues were also up 4 percent to $1.53 billion.

However, revenue for the company's technology solutions segment declined 6 percent to $770 million.

Looking ahead to fiscal 2015, McKesson affirmed its outlook for adjusted earnings in a range of $10.50 to $10.90 per share. Analysts currently expect the company to earn $10.81 per share for the the year.

MCK closed Tuesday's trading at $201.20, down $1.50 or 0.74 percent on a volume of 2.02 million shares. In after-hours, the stock further declined $1.30 or 0.65 percent to $199.90.