Why did MC's Q1 2024 earnings fall short of forecasts?

McKesson's (MCK) Q1 2024 earnings fell short of forecasts due to a combination of factors:

1. **Revenue Shortfall**: The most significant discrepancy was in the revenue category, where McKesson reported $95.29 billion for the quarter, which was notably lower than the expected figure. This shortfall, amounting to -$480 million, directly impacted the overall earnings performance, as revenue is a key driver of profitability.
2. **Earnings Per Share (EPS) Variance**: Although McKesson's diluted EPS for the quarter was $6.95, which might have been in line with expectations, the overall earnings fell short due to the revenue shortfall. EPS alone does not fully reflect the company's financial health, especially when compared to revenue, which is a more comprehensive indicator of business performance.
3. **Market and Economic Factors**: The earnings report was also influenced by broader market and economic factors, including high compensation expenses and market uncertainties. These factors, although not directly within a company's control, significantly impact its financial outcomes, especially in the context of competitive asset management and investment banking services.

In summary, McKesson's Q1 2024 earnings fell short due to a combination of lower-than-expected revenue and higher-than-anticipated expenses, with market and economic factors playing a role.