This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Express Scripts Profit Rises 21 Percent In 3rd Qtr

The Associated Press

Express Scripts reported a 20 percent boost in profit for the third quarter, but executives for the pharmacy benefit manager cautioned that the company faces a weaker outlook heading into 2013, and its shares plunged in aftermarket trading.

Express said in a statement "the current weak business climate and the unemployment outlook" could restrain performance next year. "Despite near-term headwinds and a challenging macroeconomic environment, we remain confident we are well-positioned for continued growth," said Express CEO George Paz.

Pharmacy benefits managers, or PBMs, run prescription drug plans for employers, insurers and other customers. They process mail-order prescriptions and handle bills for prescriptions filled at retail pharmacies.

Company shares dropped $9.15, or 14.6 percent, to $53.73 in late trading.

The company closed its $29.1 billion acquisition of Medco, a fellow pharmacy benefits manager, or PBM, in early April. The deal created a company big enough to handle the prescriptions of more than one in three Americans.

The acquisition affected Express Scripts' results across the board, increasing revenue by 133 percent to $26.9 billion. Adjusted prescriptions increased 116 percent to 399 million. The measure counts 90-day mail order prescriptions as three one-month prescriptions.

The company reported net income of $391 million, or 47 cents per share in the three months that ended September 30. That compares to earnings of $324.7 million, or 66 cents per share, in last year's quarter. The company's outstanding shares ballooned after the Medco acquisition, pushing down per-share results.

Excluding the impact of the transaction, the company would have earned $1.02 per share in the quarter.

Analysts expected earnings of 99 cents per share on $27.5 billion in revenue, according to FactSet.

The company raised the lower range of its earnings guidance, predicting 2012 results between $3.65 and $3.75. Wall Street expects, on average, profit of $3.71 per share, with estimates ranging from $3.61 to $3.80.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs