McKesson 1Q Sales, Adjusted Profit Ahead Of Expectations, But Pandemic Weighs On Volumes

By Micah Maidenberg

McKesson Corp. reported flat sales for its latest quarter as the drug and medical-supplies distributor said it felt the effects of lower prescription volumes and fewer patient primary care visits with people sheltering in place during the Covid-19 pandemic.

McKesson reported a profit for its fiscal first quarter of $444 million, or $2.72 a share, compared with earnings of $423 million, or $2.24 a share, a year earlier. A gain related to after-tax insurance proceeds helped results.

The company's adjusted profit of $2.77 a share for the period, which ended June 30, surpassed analysts' forecasts but fell year over year.

Revenue ticked down slightly to $55.68 billion from $55.73 billion but was higher than the $53.85 billion that analysts polled by FactSet expected.

Quarterly revenue in its U.S. pharmaceutical and specialty solutions totaled $45.1 billion, up 2% versus last year, the company said. Higher volumes from national retailers in part help to offset more demand for generic drugs and lower prescription volumes in the quarter.

The company reported revenue dropped 5% in its medical-surgical solutions business, "driven by declines in primary care patient visits, partially offset by higher volumes of personal protective equipment."

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

August 03, 2020 07:35 ET (11:35 GMT)

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