Inside Express Scripts, Inc.’s Upcoming Second Quarter Earnings Release

S&P 500 (NYSE:SPY) component Express Scripts, Inc. (NASDAQ:ESRX) will unveil its latest earnings on Wednesday, July 27, 2011. 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. Medco Health Solutions, Inc. Earnings Cheat Sheet: Snaps Strong Streak with Profit Drop>>

Express Scripts, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 71 cents per share, a rise of 18.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 76 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 71 cents during the last month. For the year, analysts are projecting profit of $3.19 per share, a rise of 27.6% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported net income of 66 cents per share against a mean estimate of 70 cents. Two quarters ago, it beat expectations by one cent with profit of 71 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $11.34 billion in revenue this quarter, a rise of 0.4% from the year ago quarter. Analysts are forecasting total revenue of $45.75 billion for the year, a rise of 1.7% from last year’s revenue of $44.97 billion.

Analyst Ratings: Analysts are bullish on this stock with 21 analysts rating it as a buy, none rating it as a sell and eight rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 25.5% while it rose 47.6% in the fourth quarter of the last fiscal year and 52.6% in the third quarter of the last fiscal year.

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 0.4% in the first quarter and rose 37.7%in the fourth quarter of the last fiscal year, more than twofold in the third quarter of the last fiscal year and more than twofold in the second quarter of the last fiscal year.

Competitors to Watch: Medco Health Solutions Inc. (NYSE:MHS), Magellan Health Services, Inc. (NASDAQ:MGLN), Walgreen (NYSE:WAG), CVS (NYSE:CVS), Centene Corporation (NYSE:CNC), AMERIGROUP Corporation (NYSE:AGP) and American Dental Partners, Inc. (NASDAQ:ADPI).

Stock Price Performance: During May 24, 2011 to July 21, 2011, the stock price had fallen $3.92 (-6.6%) from $59.28 to $55.36. The stock price saw one of its best stretches over the last year between March 21, 2011 and March 29, 2011 when shares rose for seven-straight days, rising 6.4% (+$3.32) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 5.7% (-$3.11) over that span. Shares are up $1.31 (+2.4%) year to date.

(Source: Xignite Financials)

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