McKesson Corporation (MCK) Shares Gap Down After Earnings Miss
McKesson Corporation (NYSE:MCK)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $172.70, but opened at $166.35. McKesson Corporation shares last traded at $162.53, with a volume of 3,253,920 shares traded.
The company reported $2.46 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.81 by $0.35. The company had revenue of $51.05 billion for the quarter, compared to analyst estimates of $51.22 billion. McKesson Corporation had a return on equity of 25.76% and a net margin of 2.42%. McKesson Corporation’s quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.50 EPS.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 2nd. Shareholders of record on Friday, September 1st will be issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 0.88%. The ex-dividend date is Wednesday, August 30th. This is an increase from McKesson Corporation’s previous quarterly dividend of $0.28. McKesson Corporation’s payout ratio is presently 5.00%.
A number of equities analysts have recently weighed in on MCK shares. Vetr downgraded McKesson Corporation from a “strong-buy” rating to a “buy” rating and set a $157.86 target price on the stock. in a report on Tuesday, April 11th. Evercore ISI reiterated an “outperform” rating and issued a $166.00 target price on shares of McKesson Corporation in a report on Monday, April 17th. Leerink Swann reiterated a “hold” rating and issued a $140.00 target price on shares of McKesson Corporation in a report on Friday, April 21st. Barclays PLC reiterated an “overweight” rating and issued a $174.00 target price on shares of McKesson Corporation in a report on Thursday, April 27th. Finally, Zacks Investment Research downgraded McKesson Corporation from a “hold” rating to a “sell” rating in a report on Wednesday, May 3rd. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and nine have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $171.21.
In other McKesson Corporation news, Chairman John H. Hammergren sold 19,316 shares of the company’s stock in a transaction that occurred on Tuesday, May 30th. The stock was sold at an average price of $162.31, for a total transaction of $3,135,179.96. Following the completion of the sale, the chairman now owns 96,644 shares of the company’s stock, valued at $15,686,287.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Marie L/Ca Knowles sold 1,083 shares of the company’s stock in a transaction that occurred on Monday, July 31st. The stock was sold at an average price of $162.55, for a total value of $176,041.65. The disclosure for this sale can be found here. Insiders have sold 60,231 shares of company stock valued at $9,830,297 in the last ninety days. Company insiders own 1.20% of the company’s stock.
Large investors have recently made changes to their positions in the company. Wellington Management Group LLP boosted its stake in shares of McKesson Corporation by 0.9% in the first quarter. Wellington Management Group LLP now owns 22,730,846 shares of the company’s stock worth $3,370,074,000 after buying an additional 192,254 shares during the last quarter. BlackRock Inc. raised its position in shares of McKesson Corporation by 2,026.2% in the first quarter. BlackRock Inc. now owns 14,198,977 shares of the company’s stock worth $2,105,140,000 after buying an additional 13,531,173 shares during the period. Ballentine Partners LLC acquired a new position in shares of McKesson Corporation during the first quarter worth approximately $191,000. Massachusetts Financial Services Co. MA raised its position in shares of McKesson Corporation by 3.8% in the first quarter. Massachusetts Financial Services Co. MA now owns 4,927,553 shares of the company’s stock worth $730,560,000 after buying an additional 180,107 shares during the period. Finally, Parnassus Investments CA raised its position in shares of McKesson Corporation by 310.0% in the first quarter. Parnassus Investments CA now owns 4,280,594 shares of the company’s stock worth $620,727,000 after buying an additional 3,236,594 shares during the period. 89.10% of the stock is owned by hedge funds and other institutional investors.
The firm has a market capitalization of $32.70 billion, a P/E ratio of 7.06 and a beta of 1.13. The company has a 50-day moving average price of $164.64 and a 200 day moving average price of $151.68.
TRADEMARK VIOLATION WARNING: “McKesson Corporation (MCK) Shares Gap Down After Earnings Miss” was published by The Cerbat Gem and is the property of of The Cerbat Gem. If you are reading this piece of content on another domain, it was illegally copied and republished in violation of international copyright & trademark law. The legal version of this piece of content can be read at https://www.thecerbatgem.com/2017/08/07/mckesson-corporation-mck-shares-gap-down-on-disappointing-earnings-updated.html.
McKesson Corporation Company Profile
McKesson Corporation (McKesson) is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. The Company operates through two segments: McKesson Distribution Solutions and Technology Solutions. The McKesson Distribution Solutions segment distributes drugs and equipment, and health and beauty care products across North America and internationally.
Receive News & Stock Ratings for McKesson Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McKesson Corporation and related stocks with our FREE daily email newsletter.