FRANKLIN LAKES, N.J. (
beat The Street's consensus in the fourth quarter and predicted that it would achieve a high client-retention rate in 2010.
Medco sees 2010 earnings in the range of $3.05 to $3.15, representing 17% to 21% growth over 2009. The company also says that its 2010 earnings, excluding items, should fall in the range of $3.28 to $3.38, representing 16% to 19% growth over 2009. Medco says it expects to achieve a 99% client retention rate for 2010.
Analyst are projecting full-year earnings of $3.36.
For the fourth quarter, Medco reported net income of $341.5 million, up 24.5% over the same quarter last year. Earnings per share increased 29.6% to 70 cents from 54 cents a year ago. Excluding items, the company saw earnings per share increase 28.8% to 76 cents from 59 cents the previous year.
Total net revenue at Medco increased 17.6% to a more than $15.2 billion, primarily as a result of contributions from significant new client wins and price inflation on brand-name drugs.
The consensus estimate for Medco's fourth quarter was 75 cents on revenue of $15.09 billion.
-- Reported by Andrea Tse in New York
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