Tag: mckesson earnings

McKesson Jumps 34% Off Lows - Now What?

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (NYSE:MCK) fell to a 52-week low back in February and has since surged 34%, appreciating from $148 to ~$200 per share as of mid-July. On February 16th, I published an article titled “McKesson Has Hit A 52-Week Low – Buying Opportunity” positing that McKesson has put in place a string of positive shareholder friendly maneuvers to position itself for future growth and break out of its slump. McKesson had hit a 52-week low and boasted a P/E of 16 and a PEG of 1.46 at the time. McKesson appeared very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program. Now that the stock has nearly breached the $200 level thus appreciating over 34%, now what? Continue reading "McKesson Jumps 34% Off Lows - Now What?" →

McKesson Posts Solid Fiscal Q4 Earnings - Concerns Remain

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (NYSE:MCK) has been faced with a challenging healthcare landscape as political posturing, drug pricing scrutiny, overall sentiment towards pharmaceutical companies due to price gouging allegations and the overall rotation out of healthcare related stocks. This confluence of events has plagued McKesson’s stock, falling from $241 to $148 or 39% in just 9 months from May of 2015 through February 2016. MCK has been on an acquisition spree as of late and announced layoffs of 1,600 workers or about 4% of its U.S. workforce. These collective efforts are aimed to stem any losses in revenue from a hit to its customer base while continuing to drive value for shareholders. McKesson has acquired two medical firms that focus in oncology for a total of $1.2 billion and Ontario-based Rexall Health for $2.2 billion. McKesson is being proactive and aligning its cost structure in a fiscally responsible manner in order to remain competitive and add value to shareholders. At the writing of my previous article covering McKesson, it had hit a 52-week low of ~$150 in March. Since then, the stock has been on an uptick to current levels at $182 or 20% rise in its stock price. McKesson appears very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program however concerns remain. Continue reading "McKesson Posts Solid Fiscal Q4 Earnings - Concerns Remain" →

McKesson Goes On Acquisition Spree And Announces Layoffs

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (NYSE:MCK) has been on an acquisition spree as of late and announced layoffs of 1,600 workers or about 4% of its U.S. workforce. These collective efforts are aimed to stem any losses in revenue from a hit to its customer base while continuing to drive value for shareholders. McKesson has agreed to acquire two privately held medical firms that focus in oncology for a total of $1.2 billion. McKesson has also agreed to acquire Ontario-based Rexall Health for $2.2 billion in Canada. Layoffs are underway as well after the company determined “reductions in our workforce would be necessary to align our cost structure with our business model.” McKesson is being proactive and aligning its cost structure to in a fiscally responsible manner in order to remain competitive and add value to shareholders. After the recent political induced healthcare sell-off, many healthcare stocks look attractive at these levels, specifically McKesson. Once the political cycle is complete in 2016, these stocks will likely benefit from the mere absence of political headwinds. McKesson has hit a 52-week low and remains near that level and boasts a P/E of 16 and a PEG of 1.46. McKesson appears very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program. Continue reading "McKesson Goes On Acquisition Spree And Announces Layoffs" →

McKesson Has Hit A 52-Week Low - Buying Opportunity

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

As the political cycle unfolds into 2016, the entire healthcare cohort has posted shape declines, this was particularly true for McKesson (MCK). This shape decline coincided with heated political rhetoric aimed at the collective cohort of healthcare and more specifically biotech related companies. The cynical sentiment by political frontrunners was largely rooted in the pricing of drugs and cost effective medical access. As candidate threats via legislative action geared towards reining in the costs of drugs unfolded, these actions negatively reverberated through healthcare and biotech stocks alike. The political posturing surrounding potential plans to reign in drug costs are now largely priced into many stocks within the healthcare umbrella. I contend that after the recent sell-off, many healthcare stocks look attractive at these levels, specifically McKesson. Once the political cycle is complete in 2016, these stocks will likely benefit from the mere absence of political headwinds. McKesson has now hit a 52-week low and boasts a P/E of 16 and a PEG of 1.46. McKesson appears very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program. Continue reading "McKesson Has Hit A 52-Week Low - Buying Opportunity" →

McKesson Delivers Another Steller Quarterly Report

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (MCK) reported quarterly results last week and beat on both the top and bottom line while raising guidance and announcing a massive $2 billion share buyback program. The stock responded with a yawn and now sets around $180 per share. MCK presents a compelling investment opportunity in the healthcare space, particularly after the recent sell-off from $243 to $180 per share. This downward movement was flanked by great earnings reports, increased dividend and additional share buybacks. MCK continues to become cheaper and cheaper as each earnings report is announced and the company continues to purchase additional shares. McKesson looks to be undervalued given its growth rate, acquisitive mindset, attractive P/E, dividend and share buyback program. I previously wrote an article outlining my bull case for McKesson and since then the stock has only become cheaper. I feel McKesson is a buy below $200 per share.

McKesson's Blowout Quarterly Results

McKesson reported revenue of $58.8 billion which translates into a 10% increase from the prior fiscal year quarter. On top of this revenue growth, earnings per share increased 19%, cash, and cash equivalents reached $5.2 billion, the company initiated a $2 billion share buyback program and raised guidance from $12.36-$12.86 to $12.50-$13.00 per share. All of these attributes bode well for investors, and now McKesson has a trailing 12 month EPS of $8.26 and with a current price of $179 this translates into a P/E of 21.7. This is an attractive P/E given its shareholder-friendly capital return plan via dividends and share buybacks along with its growth. Continue reading "McKesson Delivers Another Steller Quarterly Report" →