McKesson Rises after Earnings Beat; Buys Retail Pharmacies

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Drug and medical product distributor McKesson (MCK) rose about 3% after hours as its fourth quarter earnings beat analysts’ expectations.

McKesson posted $1.40 of EPS, 2 cents better than expectations, and exceeded analysts’ revenue expectations. The company also reaffirmed its 2012 earnings outlook. McKesson said its board has authorized an additional $650 million share buyback.

McKesson also announced that it will buy Katz Group Canada, a network of retail pharmacies, for 920 million Canadian dollars.

“We are excited about this acquisition which, combined with our increased share repurchase authorization, demonstrates our commitment to using a portfolio approach to deploy our significant cash balances,” said Chairman and CEO John Hammergren.



Original Article Source by Barrons.com