Express Scripts Inc. Earnings: The Streak is Broken
S&P 500 (NYSE:SPY) component Express Scripts Inc. (NASDAQ:ESRX) reported its results for the fourth quarter. Express Scripts 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 Fourth Quarter
Results: Net income for the healthcare facilities company fell to $290.4 million (59 cents per share) vs. $329.6 million (62 cents per share) a year earlier. This is a decline of 11.9% from the year-earlier quarter.
Revenue: Rose 7.1% to $12.1 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Express Scripts Inc. reported adjusted net income of 82 cents per share. By that measure, the company fell short of mean estimate of 85 cents per share. It beat the average revenue estimate of $11.6 billion.
Quoting Management: “Through our unwavering focus on innovation, service and alignment, we achieved a historically high level of client retention,” stated George Paz, chairman and chief executive officer. “The pending merger with Medco will allow us to combine our complementary strengths and accelerate our clinical offerings designed to improve health outcomes while lowering healthcare costs for our clients and patients.”
Last quarter’s profit decreases breaks a four-quarter run of profit increases. In the third quarter, net income rose 7.7% from the year earlier, while the figure increased 15.3% in the second quarter, 25.5% in the first quarter and 47.6% in the fourth quarter of the last fiscal year.
Revenue has now gone up in each of the last three quarters. In the third quarter, revenue rose 2.8% to $11.57 billion while the figure rose 0.6% in the second quarter from the year earlier.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 79 cents versus a mean estimate of net income of 78 cents per share.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 80 cents. In the past month, the average estimate for the fiscal year has fallen from $3.01 per share to $3 abs.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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