McKesson (NYSE: MCK) reported earnings on Jan. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), McKesson beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins shrank, net margins improved.

Revenue details
McKesson booked revenue of $30.84 billion. The 16 analysts polled by S&P Capital IQ anticipated a top line of $30.19 billion. Sales were 9.2% higher than the prior-year quarter's $28.20 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.40. The 16 earnings estimates compiled by S&P Capital IQ averaged $1.38 per share on the same basis. GAAP EPS of $1.20 for Q3 were 100% higher than the prior-year quarter's $0.60 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 5.1%, 10 basis points worse than the prior-year quarter. Operating margin was 1.7%, 10 basis points worse than the prior-year quarter. Net margin was 1.0%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $30.04 billion. On the bottom line, the average EPS estimate is $2.05.

Next year's average estimate for revenue is $120.46 billion. The average EPS estimate is $6.28.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McKesson is outperform, with an average price target of $95.83.

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