Shares of McKesson are rising in pre-market trading after the healthcare services provider posted better-than-expected 2Q earnings and raised its fiscal 2021 guidance. The stock is up about 1% in the pre-market session after surging over 6.5% yesterday.
McKesson’s (MCK) adjusted earnings of $2.77 per share beat analysts’ expectations of $2.32. Its revenues of $55.7 billion also surpassed Street estimates of $54 billion. The company’s CEO, Brian Tyler said, “Thanks to the strong execution of our employees around the world, McKesson delivered first-quarter results ahead of our original expectations, as volumes across the business improved earlier than anticipated.”
Buoyed by better-than-expected quarterly results, McKesson raised its adjusted EPS guidance range for fiscal 2021 to $14.70-$15.50 from $13.95-$14.75.
UBS analyst Kevin Caliendo raised the stock’s price target to $170 (6.3% upside potential) from $165 and maintained a Buy rating. On July 8, Guggenheim analyst Glen Santangelo raised the price target to $175 from $168 and reiterated a Buy, saying “the risk/reward is attractive heading into the Q1 earnings report.” He further stated that “healthcare facilities and provider offices have reopened at a healthy pace, and key customers have offered encouraging commentary.”
Overall, MCK analysts have a cautiously optimistic Moderate Buy consensus on the stock. The average price target of $171.83 implies upside potential of 7.5%. (See MCK stock analysis on TipRanks).
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