McKesson released financial results for the third quarter ended Dec. 31, 2017. Here are seven insights:
1. Third-quarter revenues were up 7 percent from $50.1 billion one year ago.
2. Earnings per diluted share for the third quarter were $4.32, up 51 percent. This included about $370 million in net tax benefits associated with the 2017 Tax Cuts and Jobs Act.
3. Operating profit for McKesson's technology solutions segment dropped to $65 million for the quarter, as a result of contributions to Change Healthcare, the company's sale of its Enterprise Information Solutions business and reduced reimbursement in the company's retail pharmacy business in the U.K.
4. The company attributed financial results to a lower share count, organic growth and strategic sourcing through ClarusONE, profits from acquisitions and a lower tax rate.
5. McKesson's distribution solutions revenues were $53.6 billion for the quarter.
6. "As a result of the lower tax rate and share count, we are raising and narrowing our fiscal 2018 adjusted earnings outlook from a range of $11.80 to $12.50 per diluted share to a new range of $12.50 to $12.80 per diluted share," said Chairman and CEO John Hammergren.
7. For the fiscal year ending March 31, 2018, McKesson expects GAAP earnings per diluted share of $7.65 to $9.00.
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