MCK - McKesson Corporation (MCK) Q3 2024 Earnings Call Transcript

2024-02-07 19:12:04 ET

McKesson Corporation. (MCK)

Q3 2024 Earnings Conference Call

February 07, 2024, 04:30 PM ET

Company Participants

Rachel Rodriguez - VP of Investor Relations

Brian Tyler - Chief Executive Officer

Britt Vitalone - Chief Financial Officer

Conference Call Participants

Charles Rhyee - TD Cowen

Eric Percher - Nephron Research

Lisa Gill - JPMorgan

Allen Lutz - Bank of America

Brian Tanquilut - Jefferies

Kevin Caliendo - UBS

Eric Coldwell - Baird

Stephanie Davis - Barclays

Erin Wright - Morgan Stanley

Daniel Grosslight - Citi

Elizabeth Anderson - Evercore ISI

George Hill - Deutsche Bank

Presentation

Operator

Welcome to McKesson’s Third Quarter Fiscal 2024 Earnings Conference Call. Please be advised that today’s conference is being recorded. At this time, I would like to turn the conference over to Rachel Rodriguez, VP of Investor Relations. Please go ahead.

Rachel Rodriguez

Thank you, operator. Good afternoon, and welcome everyone to McKesson’s third quarter fiscal 2024 earnings call. Today, I’m joined by Brian Tyler, our Chief Executive Officer; and Britt Vitalone, our Chief Financial Officer. Brian will lead off, followed by Britt, and then we will move to a question-and-answer session. Today’s discussion will include forward-looking statements such as forecast about McKesson’s operations and future results. Please refer to the cautionary statements in today’s earnings release and presentation slides available on our website at investor.mckesson.com and to the Risk Factors section of our most current recent annual and periodic SEC filings for additional information concerning risk factors that could cause our actual results to materially differ from those in our forward-looking statements.

Information about non-GAAP financial measures that we will discuss during this webcast, including a reconciliation of those measures to GAAP results, can be found in today’s earnings release and presentation slides. The presentation slides also include a summary of our results for the quarter and updated guidance.

With that, let me turn it over to Brian.

Brian Tyler

Thank you, Rachel, and good afternoon to everybody. Thanks for joining our call. McKesson reported a solid fiscal third quarter highlighting the continued momentum across the business. We delivered total revenues of $80.9 billion and adjusted earnings per diluted share of $7.74 both of which grew by double-digits when compared to the prior year. As a result of the recent performance and our latest outlook we are raising and narrowing our guidance range for fiscal 2024 adjusted earnings per diluted share from $26.80 to $27.40 to an updated range of $27.25 to $27.65. This solid financial performance is driven by that focus execution against our company priorities as a diversified healthcare services company we are uniquely positioned to improve healthcare in every setting. This includes the areas of oncology and biopharma services. We continue to make significant progress in advancing our strategy and priorities, and I'm pleased to share some of the updates with you today.

Let me start where I always like to start, and that's with our focus on people and culture. I start here because it's foundational to everything we do at McKesson. In January, our board of directors welcomed Kevin Ozan as a new independent director. As the former Chief Financial Officer of McDonald's Corporation, Mr. Ozan has over two decades of experience in both strategy and finance, and will contribute a valuable perspective to our boardroom. We look forward to his leadership as we work together to deliver on our growth initiatives. Driving the growth of our company requires a talented and diverse leadership team, and equally important, a diverse workforce where each individual is empowered to bring their own opinions, their own ideas, and perspectives. Our commitment to best talent and inclusion is reflected in every aspect of our operations. It's how we build a support network for our employees and how we each live these values through everyday interactions....

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