McKesson Corporation (MCK), a leading healthcare services and information technology company, reported its Q3 earnings for the fiscal year 2024. The company's revenue increased by 15% YoY to $80.9 billion, beating analysts' estimates of $77.86 billion. This growth was primarily driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.
The US Pharmaceutical segment, which accounts for most the company's revenue, saw a 18% increase YoY to $73.02 billion. This growth was driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications. The segment's operating profit was $307 million, while adjusted operating profit was $828 million, an increase of 6% YoY.
The Prescription Technology Solutions segment reported revenue of $1.21 billion, a 7% increase YoY, driven by increased prescription volumes in the technology services and third-party logistics businesses. The segment's operating profit was $178 million, while adjusted operating profit was $193 million, an increase of 25% YoY.
The Medical-Surgical Solutions segment reported revenue of $3.03 billion, a 1.5% increase YoY, driven by growth in the primary and extended care businesses, partially offset by lower contribution from kitting, storage, and distribution of ancillary supplies for the US government's COVID-19 vaccine program. The segment's operating profit was $268 million, while adjusted operating profit was $282 million, a decrease of 16% YoY.
The International segment reported revenue of $3.64 billion, a 18% decrease YoY, driven by divestitures within McKesson's European business, partially offset by higher pharmaceutical distribution volumes in the Canadian business. The segment's operating profit was $126 million, while adjusted operating profit was $104 million, a decrease of 27 % YoY, driven by divestitures within McKesson's European business.
The company raised and narrowed its guidance range for fiscal 2024 adjusted earnings per diluted share to $27.25 to $27.65.
In conclusion, McKesson's Q3 earnings report highlights the company's strong performance in the US Pharmaceutical segment, driven by increased prescription volumes and higher sales of specialty products, GLP-1 medications, and retail national account customers. The company's adjusted earnings per diluted share of $7.74 increased by 12% YoY, beating analysts' estimates of $7.04. The company's adjusted EPS guidance for fiscal 2024 has been raised to $27.25 to $27.65.