McKesson Revises FY17 Outlook; Board Authorizes $4.0 Bln Share Buyback

(RTTNews) - McKesson Corp. (MCK) announced the company updated its adjusted earnings outlook to a new range of $12.35 to $12.85 per share from the previous range of $13.43 to $13.93 per share for the fiscal year ending March 31, 2017. Analysts polled by Thomson Reuters expect the company to report profit per share of $13.59. Analysts' estimates typically exclude special items.

"Our updated outlook reflects McKesson's expectation of a lower profit contribution resulting from recent customer pricing activities and lower operating profit as a result of further moderating branded pharmaceutical pricing trends compared to previous expectations," said John Hammergren, chairman and CEO.

Excluding a goodwill impairment charge of $1.24 and Cost Alignment Plan credits of 2 cents from adjusted Earnings, second-quarter results per share was $2.94, down 7% year-over-year, compared to $3.17 in the prior year. Revenues were $50.0 billion for the second quarter, up 2% year-over-year.

The Board of of McKesson declared a regular dividend of twenty-eight cents per share on Common Stock. The dividend will be payable on January 2, 2017, to stockholders of record on December 1, 2016.