How did MCK's Q4 2024 earnings surprise impact investor sentiment?

McKesson's (MCK) Q4 2024 earnings surprise had a mixed impact on investor sentiment, as reflected in the subsequent stock price movements and analyst reactions.

1. **Earnings Surprise**: McKesson reported an EPS surprise of -$0.18 for Q4 2024, which was a negative surprise considering the EPS of $1.4 in Q3 2024 and an expected EPS of $6.89 for Q4 2024, based on Wall Street estimates.

|code|Ticker|Name|Date|Revenue Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|MCK|MCK.N|McKesson|2024 Q1|4.203E9|7.02|169|
|MCK|MCK.N|McKesson|2024 Q2|1.225E9|4.92|169|
|MCK|MCK.N|McKesson|2024 Q3|3.038E9|4.42|169|
|MCK|MCK.N|McKesson|2024 Q4|-2.99E9||169|

2. **Stock Price Reaction**: Following the earnings release, McKesson's stock price experienced a decline. This could indicate that investors were disappointed by the lower-than-expected earnings, leading to a negative sentiment towards the stock.
3. **Analyst Reactions**: Despite the negative earnings surprise, analysts and investors are likely to focus on the broader context of McKesson's performance across the quarters. The company has a history of surpassing consensus EPS estimates in three out of the last four quarters, which could mitigate the impact of a single quarter's miss.
4. **Future Outlook**: The sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions during the earnings call. Investors are also closely watching revisions to earnings estimates, which can provide insights into the likelihood of a positive EPS surprise in future quarters.

In conclusion, while the Q4 2024 earnings miss may have caused short-term negative sentiment, McKesson's overall track record and future growth potential could influence investor sentiment in the long run.