Information Provided By:
Fly News Breaks for May 19, 2017
MCK
May 19, 2017 | 08:17 EDT
Jefferies analyst Brian Tanquilut says that while McKesson's FY18 guidance came in above consensus on the surface, a deeper look suggests that absent a $200M deferred revenue adjustment for Change Healthcare and a lower tax rate, the apples-to-apples comparison was an earnings per share outlook of $10.81-$11.51 versus the $11.45 consensus. On an apples-to-apples basis, the earnings guidance is below consensus, Tanquilut tells investors in a post-earnings research note. He keeps a Hold rating on McKesson. The stock in premarket trading is up 8% to $153.00.
News For MCK From the Last 2 Days
MCK
Nov 20, 2017 | 11:44 EDT
Shares of Cardinal Health (CAH) are sliding after Morgan Stanley analyst Ricky Goldwasser downgraded the stock to Underweight, a sell-equivalent rating, as he believes Amazon (AMZN) is looking to scale its medical supply distribution efforts and Cardinal's potential earnings risk from the e-commerce giant's effort is larger than its peers. Patterson (PDCO) and Henry Schein (HSIC) are also lower following Morgan Stanley's comments on Amazon's entry into healthcare. SELL CARDINAL HEALTH: In a research note to investors, Morgan Stanley's Goldwasser downgraded Cardinal Health to Underweight from Equal Weight, saying the company has an "outsized exposure" to Amazon risk compared to its peers. Recent hires and public statements make it clear that Amazon is looking to scale its medical supply distribution efforts by deepening existing infrastructure and relationships with hospitals, the analyst contended, adding that it is only a matter of time until it competes head-to-head with primary source distributors such as Cardinal. Further, Goldwasser believes that Cardinal's potential earnings risk is still underappreciated despite the recent selloff. The analyst also lowered his price target on the shares to $51 from $72. AMAZON DISRUPTION OF HEALTHCARE: Meanwhile, Morgan Stanley's U.S. Internet and Healthcare teams collaborated on a report exploring Amazon's entry into healthcare, stating that it will likely take time but that the e-commerce giant's "disruption of healthcare is a foregone conclusion." Healthcare distribution, encompassing medical, dental and drug distributors, drug retailers, and pharmacy benefit managers, has the best fit with the Amazon playbook, the firm contended, adding that manufacturing and specialty players look insulated but may invite Amazon to disintermediate distribution. While retail plays to Amazon's strengths with the highest profits and lowest barriers to entry, retailers like CVS (CVS) and Walgreens (WBA) have the most opportunities to adjust their business models and lower costs to defend against Amazon, the teams told investors. Medical supply and Life Sciences distribution are "less rich" targets, but look like "low-hanging fruit," the analysts added. Morgan Stanley noted that Cardinal Health has the most exposure via its medical supply distribution segment, while McKesson (MCK) also has some, but less, risk. AmerisourceBergen (ABC), which does not distribute medical supplies, remains immune in the near-term, the firm concluded. Others in healthcare distribution facing the most share and/or margin risk from Amazon include Thermo Fisher (TMO), Henry Schein and Patterson, the team of analysts pointed out. Overall, Morgan Stanley envisions Amazon entering the supply chain in four phases, namely opening a retail pharmacy and establishing an infrastructure, contracting with generic manufacturers, building relationships with branded manufacturers, and building out claims processing capabilities. In this scenario, the e-commerce giant could transform the drug supply chain, unlocking savings for patients and plan sponsors while putting drug retailer, distributor, and PBM profit pools at risk over time, the analysts added. PRICE ACTION: In morning trading, shares of Cardinal Health have dropped 3.5% to $55.53, while Patterson has slipped about 3% and Henry Schein has slid more than 2%.
MCK
Nov 20, 2017 | 11:15 EDT
Bearish flow noted in McKesson with 1,684 puts trading, or 2x expected. Most active are Jan-18 125 puts and Jan-18 140 puts, with total volume in those strikes near 810 contracts. The Put/Call Ratio is 7.83, while ATM IV is up nearly 4 points on the day. Earnings are expected on January 25th.
MCK
Nov 20, 2017 | 08:25 EDT
Morgan Stanley's U.S. Internet and Healthcare teams collaborated on a report exploring Amazon's (AMZN) entry into healthcare, stating that it will likely take time but that the e-commerce giant's "disruption of healthcare is a foregone conclusion." While retail plays to Amazon's strengths with the highest profits and lowest barriers to entry, retailers like CVS (CVS) and Walgreens (WBA) have the most opportunities to adjust their business models and lower costs to defend against Amazon, the teams tell investors. Medical supply and Life Sciences distribution are "less rich" targets, but look like "low-hanging fruit," the analysts added. Cardinal Health (CAH) has the most exposure via its medical supply distribution segment, said the firm, which downgraded Cardinal to Underweight from Equal Weight, as previously reported. McKesson (MCK) also has some, but less, risk and AmerisourceBergen (ABC), which doesn't distribute medical supplies, remains immune in the near-term, the firm concluded. Others in healthcare distribution facing the most share and/or margin risk from Amazon include Thermo Fisher (TMO), Henry Schein (HSIC) and Patterson (PDCO), the firm added.
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.