Crispr Therapeutics shares tumble after significant earnings miss
McKesson Corporation (NYSE:MCK)’s stock has reached an unprecedented peak, touching an all-time high of $653.97. The healthcare giant, now commanding a market capitalization of over $81 billion, shows strong momentum with InvestingPro analysis indicating the stock remains slightly undervalued despite recent gains. This milestone underscores a period of significant growth for the healthcare services and information technology company, reflecting investor confidence and a robust performance in the healthcare sector. Over the past year, McKesson’s stock has witnessed a remarkable ascent, with a 1-year change showing an impressive 23.72% increase, while achieving an even stronger 27.67% gain in the past six months. This surge in stock value is indicative of the company’s strong market position and its ability to adapt and thrive in a rapidly evolving industry landscape. The company maintains a "GREAT" financial health score according to InvestingPro, which offers 15 additional valuable insights about McKesson’s performance and prospects through its comprehensive Pro Research Report.
In other recent news, McKesson Corporation reported third-quarter earnings and revenue that did not meet analyst expectations. The company posted adjusted earnings per share of $8.03, falling short of the consensus estimate of $8.27, and revenue of $95.29 billion, which was below the forecasted $95.77 billion. Despite this, McKesson raised its full-year earnings guidance, now anticipating adjusted EPS to be between $32.55 and $32.95, slightly above the analyst consensus midpoint of $32.67. In its largest business unit, the U.S. Pharmaceutical (TADAWUL:2070) segment, revenue increased 19% to $87.1 billion, supported by higher prescription volumes and growth in the oncology platform.
Additionally, McKesson announced plans to acquire a controlling interest in PRISM Vision Holdings LLC for $850 million and Florida Cancer Specialists & Research Institute for $2.5 billion, aligning with its strategy to enhance its specialty services. S&P Global Ratings revised its outlook on McKesson to positive from stable, affirming its ’BBB+’ rating, citing expected growth in the U.S. pharmaceutical and prescription technology segments. Citi analyst Daniel Grosslight raised McKesson’s stock price target to $685, maintaining a Buy rating, following a mixed financial performance where the pharmaceutical segment outperformed expectations. McKesson’s updated guidance reflects anticipated revenue growth of 16% to 18% and adjusted EPS growth of 18.6% to 20.1%, highlighting its ability to manage challenges and capitalize on strengths in its pharmaceutical distribution operations.
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