Express Scripts Earnings Cheat Sheet: Profit Misses and Sales Dip

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Express Scripts, Inc. (NASDAQ:ESRX) from reporting a profit boost in the first quarter. Express Scripts Inc. is a pharmacy benefit management (AMEX:PBM) company, providing services like retail network pharmacy management and patient care contact centers to its clients in North America.

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Express Scripts Earnings Cheat Sheet for the First Quarter

Results: Net income for the healthcare facilities company rose to $326.5 million (62 cents/share) vs. $260.2 million (47 cents/share) in the same quarter a year earlier. A rise of 25.5% from the year earlier quarter.

Revenue: Fell 0.4% to $11.09 billion YoY.

Actual vs. Wall St. Expectations: ESRX fell short of the mean analyst estimate of 69 cents/share. Estimates ranged from 65 cents per share to 71 cents per share.

Quoting Management: “Our recent Drug Trend Report details over $400 billion of pharmacy-related waste in healthcare spend by Americans in 2010 alone,” stated George Paz, chief executive officer and chairman. “Optimal outcomes are best achieved with an advanced understanding of consumer behavior. Our research and innovation in this area positions us as a leader in eliminating waste and improving health outcomes. Because of our model of alignment, as we deliver value for plan sponsors and patients, our financial performance improves.”

Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 47.6% and in the third quarter of the last fiscal year, the figure rose 52.6%.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise more than twofold.

Competitors to Watch: Medco Health Solutions Inc. (NYSE:MHS), Magellan Health Services, Inc. (NASDAQ:MGLN), Access Plans Inc (APNC), Walgreen (NYSE:WAG), CVS (NYSE:CVS), Centene Corporation (NYSE:CNC), AMERIGROUP Corporation (NYSE:AGP), American Dental Partners, Inc. (NASDAQ:ADPI), HC Innovations Inc (HCNVQ), Aperture Health, Inc. (APRE), Unity Management Group Inc (UYMG), and Swiftsure Intl., Inc. (HLMB).

Today’s Performance: Shares of ESRX are down 7% in after hours trading.


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