McKesson Shares Dip After-Hours on Mixed Fiscal Q3 Results

McKesson Corporation (NYSE: MCK) shares slipped in after-hours trading on Wednesday, February 5, following the release of its mixed fiscal third quarter results. The company reported broad-based revenue growth of 18% and adjusted operating profit growth of 16%, but investors seemed to focus more on the slower growth in adjusted earnings per diluted share, which increased by only 4%.



McKesson's revenue growth was primarily driven by an 18% increase in the U.S. Pharmaceutical segment, due to increased prescription volumes, higher volumes from retail national account customers and specialty products, and growth in the oncology platform. However, the company's adjusted earnings per diluted share increased by only 4%, primarily due to a higher tax rate, partially offset by a lower share count and growth in the U.S. Pharmaceutical segment.



The company also announced the signing of a definitive agreement to acquire an 80% controlling interest in PRISM Vision Holdings, LLC, a leading provider of general ophthalmology and retina management services. This acquisition aligns with McKesson's strategic growth initiatives and is expected to create synergies by developing a leading platform for retinal care, delivering differentiated solutions and value across providers, biopharma partners, and patients.



McKesson's fiscal 2025 outlook includes an adjusted earnings per diluted share guidance range of $32.55 to $32.95, indicating 19% to 20% growth compared to the prior year. The company does not forecast GAAP earnings per diluted share. Despite the mixed results, McKesson's long-term growth prospects remain strong, particularly in its oncology and biopharma services platforms.

In conclusion, while McKesson's shares dipped in after-hours trading following the mixed fiscal Q3 results, the company's strong revenue growth and strategic initiatives, such as the acquisition of PRISM Vision Holdings, position it well for long-term success. Investors should closely monitor the company's progress and consider the potential synergies that may arise from the acquisition.