McKesson Results Trounce Estimates

(RTTNews) - U.S. drug distributor McKesson Corp. (MCK) said Monday after the markets closed that its fourth quarter profit rose 43% from last year, as revenue increased 25% due to strong performance of its distribution solutions unit.

The company's quarterly earnings per share, excluding items, also handily beat analysts' estimates as did its quarterly revenue.

"I am pleased with our fourth-quarter results led by solid execution across the Distribution Solutions and Technology Solutions segments," said John Hammergren, McKesson's chairman and chief executive officer.

McKesson shares are currently gaining 3.02% in after hours trading after closing the day's regular trading session at $174.23, up $3.23 or 1.89%. The shares trade in a 52-week range of $109.82 to $188.02.

For the fourth quarter ended March 31, 2014, the San Francisco, California-based company reported net income of $371 million or $1.58 per share, compared to $259 million or $1.10 per share for the year-ago quarter.

Earnings per share from continuing operations for the fourth quarter was $1.56, compared to $1.11 in the prior year quarter.

Excluding items, fourth quarter adjusted earnings per share was $2.55, up from $1.48 in the fourth quarter of last year.

On average, 17 analysts polled by Thomson Reuters expected the company to earn $2.40 per share for the fourth quarter. Analysts' estimates typically exclude special items.

The results of Celesio did not have a material impact on fourth-quarter adjusted earnings per share, McKesson said.

Revenue for the fourth quarter rose 25% to $38.14 million from $30.52 million in the same quarter last year. Fifteen analysts had a consensus revenue estimate of $35.86 million for the fourth quarter.

Fourth quarter revenue for the company's distribution solutions segment surged 26% year-over-year to $37.3 billion, with North America pharmaceutical distribution and services revenues up 9%. International pharmaceutical distribution and services revenues, which represent the results of Celesio for the two months ended March 31, were $4.8 billion for the fourth quarter. Medical-Surgical distribution and services revenues were up 28%.

Revenue for the company's technology solutions segment fell 1% to $809.0 billion in the fourth quarter.

Looking forward, the company forecasts fiscal 2015 adjusted earnings of $10.40 to $10.80 per share. Analysts currently expect the company to earn $10.58 per share for the fiscal year 2015.

"Our Fiscal 2015 guidance reflects solid growth across our broad portfolio of businesses and McKesson's share of the results of Celesio. ," said Hammergren.