McKesson (NYS: MCK) is expected to report Q2 earnings on Oct. 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict McKesson's revenues will grow 2.4% and EPS will grow 9.2%.
The average estimate for revenue is $30.93 billion. On the bottom line, the average EPS estimate is $1.78.
Last quarter, McKesson notched revenue of $30.80 billion. GAAP reported sales were 2.7% higher than the prior-year quarter's $29.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $1.55. GAAP EPS of $1.58 for Q1 were 40% higher than the prior-year quarter's $1.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 5.2%, 20 basis points better than the prior-year quarter. Operating margin was 1.7%, 10 basis points better than the prior-year quarter. Net margin was 1.2%, 20 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $125.14 billion. The average EPS estimate is $7.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 583 members out of 609 rating the stock outperform, and 26 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give McKesson a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McKesson is outperform, with an average price target of $101.57.
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The article McKesson's Upcoming Earnings: What You Need To Know originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend McKesson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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