McKesson's stock was up 0.9% just before CNBC report of Amazon shelving drug-selling plan
McKesson's stock was up 0.9% just before CNBC report of Amazon shelving drug-selling plan
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McKesson's stock was up 0.9% just before CNBC report of Amazon shelving drug-selling plan
McKesson's stock spikes up 4.6% after CNBC report of Amazon shelving drug selling plans
McKesson Corp. shares rose 0.7% in premarket trade Thursday after the company reported third-quarter profit and revenue beats and an upbeat 2018 outlook. Earnings for the latest quarter rose to $903 million, or $4.33 per share, from $633 million, or $2.85 per share in the year-earlier period. Adjusted earnings-per-share were $3.41, compared with the FactSet consensus of $2.95. The latest results exclude a $1.78 tax benefit due to corporate tax reform. Revenue rose to $53.62 billion from $50.13 billion, compared with the FactSet consensus of $51.98 billion. McKesson attributed its third-quarter results to a lower share count, growth across several business units, profits from acquisitions and a lower tax rate, including tax benefits unrelated to corporate tax reform. McKesson expects 2018 EPS of $7.65 to $9.00, compared with the FactSet consensus of $6.08, and 2018 adjusted EPS of $12.50 to $12.80, compared with the FactSet consensus of $12.26. Company shares have surged 20.9% over the last three months, compared with a 9.5% rise in the S&P 500 and a 11.6% rise in the Dow Jones Industrial Average .
McKesson shares rise 0.7% pre-market
McKesson expects 2018 adj. EPS of $12.50 to $12.80; FactSet consensus $12.26
McKesson Q3 sales $53.6 bln vs. $50.1 bln; FactSet consensus $52 bln
McKesson Q3 adj. EPS $3.41; FactSet consensus $2.95
McKesson Q3 EPS $4.33 vs. $2.85
Shares of companies across the health care industry, from health insurers to distributors, pharmacy-benefit managers and drugmakers, dropped in premarket trade on Tuesday after Amazon , Berkshire Hathaway and JPMorgan Chase announced plans for a new company to improve their employees' health care. The news hit pharmacy-benefit managers, pharmacy chains and drug distributors among the hardest, with CVS Health Corp. shares dropping 7.6%, Walgreens Boots Alliance shares dropping 5.7%, Express Scripts Holding Company dropping 4.8% and Cardinal Health Inc. shares dropping 4.3%. Several health insurers' shares also fell significantly, including UnitedHealth Group , which dropped 7.2%, Anthem Inc. , which dropped 7%, as well as Aetna Inc. and Humana Inc. . The moves reflect investor concerns that the Amazon, Berkshire Hathaway and JPMorgan initiative could shake up the status quo, especially given the three companies' large size and influential nature, and the potential interest of other employers in joining them. U.S. health care costs continue to rise year over year despite efforts to curb them, and many experts believe the fault lies with too-high prices. The SPDR S&P Biotech ETF declined 1% in premarket trade, as did the Health Care Select Sector SPDR . Shares of the ETFs have surged 15.5% and 12.3% respectively over the last three months, compared with a 10.9% increase in the S&P 500 and a 13.2% rise in the Dow Jones Industrial Average .
The Justice Department is ramping up its efforts to curb the opioid epidemic, requesting to join settlement talks in sprawling litigation against the makers and distributors of prescription painkillers.
Among the companies with shares expected to trade actively in Tuesday's session are AmerisourceBergen, Walgreens Boots Alliance, PepsiCo, Under Armour and Blue Apron.
New York City is following a wave of lawsuits against opioid manufacturers and distributors in accusing the companies of oversupplying the market and misrepresenting the safety of the drugs.
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McKesson Corp. is a health services and information technology company, which provides medicines, pharmaceutical and care management products. It operates through two segments: McKesson Distribution Solutions and McKesson Technology Solutions. The McKesson Distribution Solutions segment distributes ethical and proprietary drugs, medical-surgical supplies and equipment and health and beauty care products throughout North America. It also provides specialty pharmaceutical solutions for biotech and pharmaceutical manufacturers, sells financial, operational and clinical solutions for pharmacies. The McKesson Technology Solutions segment provides software, automation, business services and consulting to hospitals, physician offices, imaging centers and home healthcare. It also provides interactive connectivity services that streamline clinical, financial and administrative communication between patients, providers, payers, pharmacies and financial institutions agencies and payers. The company was founded by John McKesson and Charles Olcott in 1833 and is headquartered in Wilmington, DE. (See Full Profile)
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