Drug distribution giant McKesson called for a greater-than-expected windfall from Covid vaccines this year despite lagging quarterly expectations. But McKesson stock was muted late Tuesday.
For the year, McKesson now expects adjusted earnings of $24.45 to $24.95 per share, up $1.45 to $1.65 a share from its prior outlook. The guidance boost includes 60 cents to 70 cents from its efforts to distribute Covid vaccines for the U.S. government and $1 to $1.10 related to putting together and storing vaccine kits.
On a year-over-year basis, earnings would climb 11%-14%.
"This performance enables further investments in both our oncology and biopharma businesses, which are foundations for our ability to deliver long-term shareholder value," McKesson Chief Executive Brian Tyler said in a written statement.
But in after-hours trades on today's stock market, McKesson stock remained flat after closing down 1.9% at 382.04.
McKesson Stock: European Divestiture Weighs
During the September quarter, McKesson earned $6.06 per share, minus some items. Earnings slipped 1% and missed forecasts by 3 cents, according to FactSet. While sales increased 5% to $70.16 billion, they missed McKesson stock analyst estimates for $70.25 billion.
McKesson cited growth in the U.S. pharmaceutical segment for the strong sales. Partially offsetting those sales, McKesson noted lower revenue from international segments as it plans to divest its European unit.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
