Express Scripts (ESRX) Stock Slides in After-Hours Trading, Reports In-Line Q2 Results

Express Scripts (ESRX) reported 2016 second quarter earnings today that met analysts' expectations.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Express Scripts (ESRX)  are falling 1.86% to $77.39 in after-hours trading after the company reported 2016 second quarter earnings in line with analysts' estimates.

Express Scripts reported adjusted earnings of $1.57 per share, meeting analysts' estimates of $1.57 per share.

The St Louis-based pharmacy management company also reported $25.22 billion in revenue. This fell short of Wall Street's estimates of $25.42 billion for the period.

Express Scripts raised its guidance for 2016 fiscal year earnings, to $6.33-$6.43 from $6.31-$6.43.

"As the healthcare industry changes, a primary need of payers and patients remains the same: access to affordable medicine," said CEO Tim Wentworth.

Wentworth said the company's "unique business model" of client alignment, focused solutions, and compassionate culture has led to an expected 2017 retention rate of 96%-98%. 

The company was recently under fire due to a lawsuit alleging the company and insurer Anthem (ANTM) were overcharging patients with job-based insurance on prescription drug costs. The class action lawsuit could involve tens of thousands of Americans, according to a statement by law firm Ryan & Maniskas.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity, good cash flow from operations, compelling growth in net income and reasonable valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.

You can view the full analysis from the report here: ESRX

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