McKesson (NYSE: MCK) is expected to report Q3 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict McKesson's revenues will expand 0.1% and EPS will grow 15.7%.

The average estimate for revenue is $30.86 billion. On the bottom line, the average EPS estimate is $1.62.

Revenue details
Last quarter, McKesson booked revenue of $29.85 billion. GAAP reported sales were 1.2% lower than the prior-year quarter's $30.22 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.92. GAAP EPS of $1.67 for Q2 were 42% higher than the prior-year quarter's $1.18 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 5.7%, 20 basis points better than the prior-year quarter. Operating margin was 2.1%, 10 basis points better than the prior-year quarter. Net margin was 1.3%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $122.96 billion. The average EPS estimate is $7.26.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 595 members out of 622 rating the stock outperform, and 27 members rating it underperform. Among 227 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 218 give McKesson a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McKesson is outperform, with an average price target of $102.57.

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