Earnings GuidanceA bigger fear is that MCK could use this meeting as an opportunity to bring down its longer-term EPS growth guidance, which we view as meaningfully ahead of its peers on a like-for-like basis.
Operational PerformanceMCK missed FY4Q24 operationally on multiple fronts, then followed up with an even worse FY1Q25 that included negative revenue and AOI variances in US Pharma, Med-Surg, and Prescription Tech, with several negative operating guidance adjustments.
Revenue GuidanceThe company reduced its revenue guidance in its Med-Surg business, pointing to normalization of market conditions and lower volumes.