McKesson HBOC Falls on Earnings Worries

McKesson HBOC Inc. shares fell 9% amid concern about sales of the No. 1 drug wholesaler’s newly acquired medical software unit, HBO & Co. after the company released earnings late Monday. McKesson fell $7.63 to close at $74.39 on the NYSE. Earlier, shares fell as low as $72.50. While San Francisco-based McKesson’s fiscal third-quarter earnings matched analysts’ estimates, investors were concerned that HBO’s revenue fell short of expectations. Those worries are the latest in a series of concerns that investors have raised about McKesson’s $15.1-billion purchase of HBO, which closed on Jan. 12. While McKesson said profit rose 41%, meeting analyst expectations, HBO’s software sales totaled about $150 million, which was about $20 million below expectations, said Stephen Denelsky, an ING Baring Furman Selz analyst. HBO’s total revenue rose to $469 million from $394 million a year earlier.