Benzinga | Aug 5, 2021 05:55AM EDT

McKesson Q1 Earnings Surpass Wall Street Estimate; Raises FY22 EPS Outlook

* McKesson Corp (NYSE:MCK) reported first-quarter FY22 adjusted EPS of $5.56, almost doubled from $2.77 a year ago, and easily beating the analyst consensus of $4.17.

* Revenues increased 13% Y/Y to $62.67 billion, surpassing the consensus of $59.9 billion, driven by higher volumes from retail national account customers and market growth, partially offset by branded to generic conversions.

* U.S. Pharmaceutical Segment revenues were $50 billion, an increase of 12% Y/Y.

* Prescription Technology Solutions Segment revenues increased 34% to $881 million. Medical-Surgical Solutions revenues improved 40% to $2.5 billion, driven by improvements in primary care patient visits and increased sales of COVID-19 tests.

* Adjusted gross profit margin improved from 4.8% to 5%.

* Outlook: McKesson increased FY22 adjusted EPS to $19.80 - $20.40 (consensus of $19.23) from previous guidance of $18.85 -- $19.45.

* Guidance assumes $0.80 - $1.00 adjusted EPS related to the U.S. government's COVID-19 vaccine distribution and kitting programs.

* Related: Distributors Announce Proposed Opioid Settlement Agreement.

* The Board of Directors had increased the quarterly dividend by 12% to $0.47 per share.

* Price Action: MCK shares closed at $205.37 on Wednesday.