Tuesday after bell, drug wholesaler McKesson Corp. (MCK) reported a profit for the third quarter compared to a loss last year, when results were weighed down by a hefty litigation charge. The company's quarterly earnings per share met analysts' estimate. At the same time, the company raised its full year earnings outlook.
The San Francisco-based company reported net income for the third quarter of $326 million or $1.19 per share, compared to a net loss of $20 million or $0.07 per share for the year-ago quarter.
The year-ago quarter results included a pre-tax charge of $493 million, or $1.12 per share, for the Average Wholesale Price litigation.
On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.19 per share for the third quarter.
Revenue for the third quarter increased 4% to $28.27 billion from $27.13 billion in the same quarter last year. Sixteen analysts had a consensus revenue estimate of $27.67 billion for the third quarter.
"McKesson demonstrated solid execution in the third quarter. Our results were driven by our performance in Distribution Solutions, including a strong contribution from the incremental demand we are experiencing across our businesses from the impact of the flu season," said John Hammergren, McKesson chairman and chief executive officer.
Third quarter revenue from the company's drug distribution rose 4% year-over-year to $27.5 billion, with U.S. drug distribution revenue up 2% to $24.3 billion and Canadian drug distribution revenue up 23% to $2.4 billion.
Third quarter revenue from the company's technology solutions segment grew 3% year-over-year to $771 million. For the first nine months of its fiscal year, the company reported net income of $915 million or $3.36 per share, compared to $542 million or $1.94 per share for the same period last year.
Revenue for the nine-month period increased 2% to $82.06 billion from $80.41 billion in the prior year period.
Based on year-to-date progress, the company raised its fiscal year 2010 earnings outlook by $0.10 per share and now expects earnings of $4.55 to $4.70 per share, excluding the favorable impact of the litigation credit in its second quarter. Analysts currently expect the company to earn $4.55 per share for the fiscal year 2010.
Earlier Tuesday, rival AmerisourceBergen Corp. (ABC) reported a 36% rise in first quarter profit, helped by double-digit growth in revenues on strong generic pharmaceuticals sales as well as improved margins. The company also raised its earnings forecast for fiscal 2010.
Another major U.S. drug wholesaler Cardinal Health Inc (CAH) is scheduled to report its second quarter financial results on Thursday. Analysts currently expect the company to earn $0.46 per share on revenue of $24.77 billion for the second quarter.
McKesson shares, which have traded in a range of $33.13 to $64.98 over the past year, closed Tuesday's regular trading session at $62.35, up 91 cents or 1.48%. The stock is currently losing 31 cents in after hours trading.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.