McKesson Corporation (NYSE:
In reaction, Leerink Swann analyst
Larsen commented, “MCK reported F2Q:17 adjusted EPS of $2.94 (-11% y/y) which was well below Leerink/Consensus of $3.10/$3.04. Management also reduced F2017 EPS guidance by $1.08 at the midpoint. We are downgrading the stock to Market Perform due to deteriorating fundamentals, including: (1) a significant slowdown in brand inflation, (2) far less generic inflation, (3) a slowdown in the value of generic launches, (4) a more competitive pricing environment, (5) a business model where manufacturers are demanding more...