Express Scripts Earnings: Here’s Why the Stock is Down Now

Express Scripts Inc. (NASDAQ:ESRX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.64%.

Express Scripts Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.27% to $1.12 in the quarter versus EPS of $0.88 in the year-earlier quarter.

Revenue: Decreased 4.58% to $26.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Express Scripts Inc. reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1.10. It beat the average revenue estimate of $25.52 billion.

Quoting Management: “Our second quarter results reflect the successful execution of our business model of alignment,” stated George Paz, chairman and chief executive officer. “As we head toward 2014 and the introduction of insurance exchanges, additional costly regulations, escalation of brand drug prices and increased specialty drug utilization, our clients face unprecedented challenges to manage the cost and complexity of the pharmacy benefit. Our clinical specialization, advanced application of the behavioral sciences, and ability to leverage actionable data allow us to drive down costs, reduce waste and improve health in ways no other company can.”

Key Stats (on next page)…

Revenue increased 1.39% from $26.06 billion in the previous quarter. EPS increased 13.13% from $0.99 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.10 to a profit $1.08. For the current year, the average estimate has moved up from a profit of $4.26 to a profit of $4.30 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)