Express Scripts Earnings: Margins Expand, Net Income Climbs

S&P 500 (NYSE:SPY) component Express Scripts Holding Company (NASDAQ:ESRX) reported higher profit for the third quarter as revenue showed growth. Express Scripts is a pharmacy benefit management 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 Holding Company Earnings Cheat Sheet

Results: Net income for Express Scripts Holding Company rose to $391.4 million (47 cents per share) vs. $324.7 million (66 cents per share) in the same quarter a year earlier. This marks a rise of 20.5% from the year-earlier quarter.

Revenue: Rose more than twofold to $27 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Express Scripts Holding Company reported adjusted net income of $1.02 per share. By that measure, the company beat the mean estimate of 99 cents per share. It beat the average revenue estimate of $11.47 billion.

Quoting Management: “Despite near-term headwinds and a challenging macroeconomic environment, we remain confident we are well-positioned for continued growth”, stated Paz. “We have historically managed expenses rigorously while investing toward the future, focusing on innovation, service and optimal clinical outcomes, and will continue to do so, even when faced with challenges on other fronts.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased more than twofold to $27.69 billion in the second quarter. The figure rose 9.4% in the first quarter from the year earlier and climbed 7.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit increase breaks a three-quarter run of year-over-year profit decreases. In the second quarter, net income fell 48.9% from the year earlier, while the figure dropped 18% in the first quarter and 11.9% in the fourth quarter of the last fiscal year.

The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 88 cents versus a mean estimate of net income of 82 cents per share.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.05 per share from $1.03. For the fiscal year, the average estimate has moved up from $3.53 a share to $3.70 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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