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BRIEF-Mckesson anticipates recording pre-tax gain of about $2.9 to $3.5 bln in Q4
March 2, 2017 / 4:08 PM / 9 months ago

BRIEF-Mckesson anticipates recording pre-tax gain of about $2.9 to $3.5 bln in Q4

March 2 (Reuters) - Mckesson Corp:

* As a result of net gain from transaction, co to add about $10.70-$12.35 in Q4 GAAP earnings per share from continuing operations

* Mckesson provides financial update to reflect creation of a new healthcare information technology company

* Sees FY 2017 earnings per share $20.35 to $22.50 from continuing operations

* Q4 earnings per share view $3.15 -- Thomson Reuters I/B/E/S

* Previous fiscal 2017 guidance range updated to reflect timing effect related to closing of transaction

* In conjunction with creation of new company, change healthcare raised approximately $6.1 billion in debt

* In its Q4 results, Mckesson anticipates recording a pre-tax gain of approximately $2.9 billion to $3.5 billion

* Mckesson owns approximately 70 pct of change healthcare, with remaining equity ownership held by CHC stockholders

* Sees 2017 earnings per share of $12.45 to $12.75/diluted share, which excludes about $1.28 to $1.30 in charges to adjusted earnings related to goodwill impairment

* Mckesson’s 70 pct share of change healthcare’s initial annual interest expense run rate is expected to be approximately $200 million

* Mckesson will account for its equity share of change healthcare’s earnings on a one-month lag

* Mckesson says non-cash adjustment from transaction close process to reduce co’s reported earnings in fiscal 2018 by approximately $140 million to $170 million

* As part of deal close process, will record its share of a one-time, non-cash reduction to carrying value of its deferred revenue balance

* Non-cash adjustment will reduce mckesson’s reported earnings in fiscal 2018 by approximately $140 million to $170 million Source text for Eikon: Further company coverage:

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