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McKesson (NYSE:MCK) shares fell sharply on Thursday after the medical distributor set its Q2 outlook for fiscal 2025 below expectations.
Presenting at the Wells Fargo Healthcare Conference, CFO Britt Vitalone said a higher-than-expected tax rate is expected to weigh on its Q2 bottom line.
According to Vitalone, in Q2 the company’s tax rate is projected to reach 21%–22% and adj. earnings per share is set to stand at $6.70 – $7.00 compared to $7.39 in the consensus.
However, McKesson (MCK) reiterated the full-year outlook for tax rate at 17% -19% and reaffirmed the projection for adjusted earnings per share it gave with its Q1 FY25 financials in August.
“We still feel comfortable with that. Our businesses continue to grow. They’re in growing segments of the health care population,” Vitalone added.
