Ahead of the Bell: Analysts expect gains for McKesson

NEW YORK—Analysts expect shares of McKesson Corp. to rise Tuesday after the prescription drug distributor reported a strong fiscal fourth quarter and forecast fiscal 2009 profit mostly above expectations.

The San Francisco-based company's profit grew 19 percent to surpass analyst estimates, as sales from both its distribution and technology businesses increased. McKesson also forecast a profit of $3.75 to $3.90 per share for the year ending March 31, 2009, expecting particularly strong growth from its technology uniit.

On average, analysts polled by Thomson Financial expected McKesson to earn $3.78 per share.

Randall Stanicky of Goldman Sachs said McKesson management is keeping the company's growth steady despite difficult industry trends.

He expects the company to earn $3.86 per share this year, and kept a "Neutral" rating with a price target of $73 per share. McKesson stock closed at $54.09 Monday.

Jefferies analyst Richard Close described the 2009 outlook as "extremely upbeat with respect to both divisions." He said the company's technology revenue and margins improved, unlike some of McKesson's competitors, who have been hurt by reduced spending.

Close maintained a "Buy" rating, with a price target of $67 per share.