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McKesson earnings rise; $1 bln buyback announced

Tue, 10/26/2010 - 2:45pm
The Associated Press

Medical supply firm McKesson Corp. reported higher fiscal second-quarter profit and sales Tuesday that fell short of Wall Street expectations. The company announced a $1 billion buyback, however, and its stock price jumped more than 5 percent after hours.

McKesson posted net income of $327 million, or $1.25 per share, for the period ended Sept. 30, up from $301 million, or $1.11 per share in the second-quarter of 2009. The company gained 28 cents per share from the sale of its Asia Pacific unit.

Excluding that sale and other one-time actions, the company would have earned $1.03 per share in the quarter. Analysts polled by Thomson Reuters were looking for $1.09 per share, on average.

Revenue for the quarter rose 1 percent to $27.5 billion from $27.1 billion a year earlier.

The company said its board approved a $1 billion stock repurchase authorization Tuesday. This follows the buyback of $1.5 billion in the first half of the fiscal year, including $531 million in the second quarter.

McKesson reaffirmed its full-year earnings guidance between $4.72 and $4.92 per share.

Shares rose $3.23, or 5.2 percent, to $65.14 in aftermarket trading following the release of the earnings and buyback announcement. In the regular session, McKesson stock gained 23 cents to close at $61.91

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