Shares of Express Scripts (NASDAQ:ESRX) plunged after it reported third quarter earnings. No worries, says the pharmacy benefits manager: the company was the victim of absurdly high expectations. Wow. This is an investor relations department you’ll want to take with a grain of salt.
Express Scripts said the business environment and unemployment hurt results. In case you were wondering, the poor economic climate led to “depressed drug utilization” by households. This means people are taking less medications compared to last year.
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Net income was $391 million, or 47 cents per share, up 21 percent. Sales increased to $27 billion, which fell short of the $27.5 billion analysts surveyed by Bloomberg had been expecting.
Currently, the company has a strong client base in the U.S. However, Express Scripts expects membership reductions in 2013 because their clients are pessimistic about the economy.
One thing is for sure, investors are pessimistic about the stock price. Shares were down over 10 percent on the news.
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