McKesson's Stock Tumbles After Downbeat Profit Outlook

McKesson Corp.'s stock tumbled 6.8% in premarket trade Monday, after the healthcare services company provided a downbeat outlook for fiscal 2016 earnings. The company now expects adjusted earnings per share of $12.60 to $12.90 for the fiscal year ending in March, compared with the previous outlook of $12.50 to $13. McKesson said the revised outlook is based on its belief that generic pharmaceutical pricing trends will be weaker in the second half of the fiscal year than previously expected. The weaker pricing trend is partially offset by a reduction in the expected tax rate, which could boost earnings per share by 28 cents. The company expects fiscal 2017 EPS growth of 3% to 8%. The stock has dropped 16% over the last year through Friday, while the S&P 500 has slipped 6%.