McKesson Q1 revenues up 3% to $51.1 billion

SAN FRANCISCO — McKesson on Thursday reported revenues of $51.1 billion for the first quarter ended June 30, up 3% compared to the year-ago period. First-quarter adjusted earnings per diluted share was $2.46, down 22% compared to $3.15 a year ago.



“McKesson’s first-quarter operating results were consistent with our expectations,” stated John Hammergren, chairman and CEO, McKesson. “We’re off to a solid start to the year and are raising our previous fiscal 2018 Adjusted Earnings outlook to a range of $11.80 to $12.50 per diluted share. In addition, we generated strong first-quarter cash flows, which allowed us to allocate capital in line with our portfolio approach to capital deployment.”



Distribution Solutions revenues were $50.9 billion for the quarter, up 4% on a reported basis and 5% on a constant currency basis. North America pharmaceutical distribution and services revenues of $43 billion for the quarter were up 4% on a reported basis and 5% on a constant currency basis, primarily reflecting market growth and acquisitions.



First-quarter results included the lapping effect of the lower profit contribution from increased price competition in McKesson's independent pharmacy business in fiscal 2017 and weaker pharmaceutical manufacturer pricing trends in the wholesaler's U.S. Pharmaceutical business within the Distribution Solutions segment, and lower profit in its Technology Solutions segment driven primarily by the contribution of the majority of the businesses to Change Healthcare.