Health and Healthcare
Express Scripts’ Earnings, Revenues, Guidance Inline
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For the quarter, the pharmacy benefits management company posted adjusted diluted earnings per share (EPS) of $1.05 on revenues of $27.41 billion. In the same period a year ago, the company reported EPS of $0.82 on revenues of $12.10 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.02 and $25.46 billion in revenues.
On a GAAP basis, EPS for the quarter totaled $0.62, as well as $1.79 for the full year.
For the full year, Express Scripts reported EPS of $3.74 on revenues of $93.86 billion, compared with EPS of $2.97 on revenues of $46.13 billion in 2011.
The company’s CEO said:
2012 was a monumental year for Express Scripts as we closed the acquisition of Medco and made significant progress integrating the two companies. Our financial performance in 2012 was strong, and as we look to the future, we are well positioned to capitalize on the complementary strengths of the combined organization, which enhance our ability to improve health outcomes, lower health care costs and continue to deliver long-term growth.
For 2013, the company guided adjusted EPS at $4.20 to $4.30. The consensus estimate calls for EPS of $4.20 on revenues of $101 billion.
The company’s $29 billion acquisition of competitor Medco doubled its revenues in 2012, and the company is expected to dominate the pharmacy benefits management sector. Analysts originally had expected 2013 earnings to reach $4.50 a share, but the company said in November that the estimate was too high based on its view of business conditions. Yesterday’s report was no surprise given the November tip-off.
Shares are up 1.6% in premarket trading this morning, at $56.48 in a 52-week range of $49.79 to $66.06. Thomson Reuters had a consensus analyst price target of around $62.60 before today’s report.
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