What long-term trends can investors expect from MCK's 2025 earnings?
4/4/2025 05:14pm
**McKesson Corporation (MCK) is poised to deliver strong earnings performance in 2025**, and investors can expect the following long-term trends to continue:
1. **Earnings Growth**: McKesson is anticipated to report earnings per share (EPS) of $9.81 for the upcoming quarter, reflecting a significant year-over-year increase of 58.74%. For the full year, the Zacks Consensus Estimates project EPS growth of approximately 19.39%.
2. **Revenue Increase**: The company's revenue is expected to rise to $93.69 billion, indicating a 22.7% increase from the previous year's same quarter. For the entire fiscal year, the forecasted revenue is $360.63 billion, representing a 16.73% change.
3. **Sector Leadership**: As the largest pharmaceutical distributor to hospitals, retail pharmacies, and medical offices in the nation, McKesson is well-positioned to capitalize on the growing demand for healthcare services and pharmaceuticals.
4. **Strategic Acquisitions**: McKesson's recent acquisitions, such as Prism Vision and Florida Cancer Specialists, are expected to contribute to the company's growth and enhance its market position. These deals align with the company's strategy to expand in higher-margin specialty services.
5. **Dividend Growth**: McKesson has a history of dividend growth, with a quarterly dividend of $0.71 per share, marking 17 consecutive years of dividend increase. This demonstrates the company's commitment to returning value to shareholders.
6. **Valuation and Analyst Confidence**: The stock's valuation is currently supported by analyst optimism, as reflected by the Zacks Rank of #3 (Hold) and the recent price target increase from Mizuho Securities to $690.
Overall, McKesson's 2025 earnings are expected to showcase robust growth, driven by operational excellence, strategic acquisitions, and a strong market position. Investors can look forward to continued earnings and revenue expansion, as well as potential dividends, making it an attractive investment for those with a long-term perspective.