McKesson forecasts fiscal 2014 profit above market estimates

Tue May 7, 2013 5:06pm EDT

May 7 (Reuters) - Drug wholesaler McKesson Corp reported a smaller-than-expected fourth-quarter profit, but forecast strong 2014 adjusted earnings as it expects its technology solutions business and the acquisition of smaller peer PSS World Medical to significantly contribute to growth.

The company expects an adjusted profit from continuing operations of $7.90 per share to $8.20 per share for fiscal 2014.

Analysts on average expect a profit of $7.21 per share, according to Thomson Reuters I/B/E/S.

Net income fell to $259 million, or $ 1.10 per share, in the January-March quarter from $521 million, or $2.09, a year earlier.

The company said it agreed to sell its 49-percent equity investment in Mexico's Nadro S.A. de C.V, and took a non-cash, pre-tax impairment charge of $191 million related to the sale in the fourth quarter.

Excluding the charge and some other one-time items, profit was $1.45 per share. Analysts were expecting a profit of $2.30 per share.

Revenue fell 3 percent to $30.6 billion, lagging analysts' average estimates of $32.01 billion.

Shares of the company were up 2 percent after the bell. They closed at $108.63 on Tuesday on the New York Stock Exchange.

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