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
TheStreet Open House

Express Scripts Shares Tumble On Warning

NEW YORK (AP) â¿¿ Shares of Express Scripts Holding Co. fell 12 percent on Tuesday after the pharmacy benefits manager said Wall Street's expectations for its 2013 earnings may be too optimistic.

THE SPARK: Express Scripts reported its third-quarter results after the market closed on Monday. The St. Louis company raised its estimates for 2012, but said its 2013 results will be hurt by factors including high unemployment and the loss of a contract with UnitedHealth Group Inc. In its quarterly earnings release Express Scripts said Wall Street's estimates for its 2013 net income were "overly aggressive."

On average, analysts expected the company to earn $4.50 per share, according to FactSet.

In a conference call Tuesday morning, Express Scripts Chairman and CEO George Paz said Express Scripts' health plan clients expect their membership rolls to decline in 2013. Paz said large employers are using contractors and part-time workers instead of hiring more full-time workers. That means fewer people are getting health insurance. Meanwhile, smaller companies are postponing health care coverage choices as they wait to see how the health care market develops, he said.

High unemployment is also reducing doctor visits, elective surgeries and prescription use, Paz added.

THE BIG PICTURE: Express Scripts runs prescription drug plans for employers, insurers and other customers. It processes mail-order prescriptions and handle bills for prescriptions filled at retail pharmacies. It is the largest U.S. company of its kind, having bought competitor Medco Health Solutions earlier this year for $29.1 billion. Express Scripts is now on pace to handle more than a billion prescriptions a year.

Express Scripts' third-quarter net income surpassed Wall Street estimates, and the company said it now expects to earn between $3.65 and $3.75 per share in 2012, up from its previous estimate of $3.60 to $3.75 per share. Analysts had forecast $3.71 per share on average.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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