McKesson (NYSE:MCK) reported late Monday a 52% decrease in third-quarter profit, hurt primarily by a $189 million litigation cost and a weaker H1N1 flu season.
The San Francisco-based company posted net income of $155 million, or 60 cents a share, compared with $326 million, or $1.21 a share, in the same quarter last year.
Excluding a one-time litigation charge, which represents an increase to an existing litigation reserve for current and possible future public entity claims related to drug reimbursement benchmarks, the company earned $1.12 a share, just ahead of average analyst estimates polled by Thomson Reuters of $1.11.
Revenue for the provider of medicines, pharmaceutical supplies and information and care management products for the health-care industry was $28.2 billion, virtually flat from a year ago, narrowly missing the Street’s view of $28.35 million.
“McKesson continued to demonstrate solid execution in the third quarter,” said John Hammergren, the company’s chief executive, who noted that he is extremely pleased with all the company accomplished during the first nine months of the fiscal year, including strong performance in distribution solutions, share repurchases and the acquisition of US Oncology.
Distribution solution revenues were flat, and its profit slipped to $1.08 billion from $1.104 billion a year ago. Revenue in its technology segment, meanwhile, gained 2%, partly a reflection of its sale of McKesson Asia Pacific.
Looking ahead, the company raised its non-GAAP earnings outlook to the range of $4.82 to $5.02 a share.