Medco Hits Targets

The company says earnings move up despite a slide in revenue.
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posted a solid first-quarter profit gain Tuesday in spite of a decline in revenue. The pharmacy benefit manager also reaffirmed full-year guidance.

For the first quarter ended March 31, the Franklin Lakes, N.J., company earned $131 million, or 47 cents a share, up from the year-ago $103 million, or 38 cents a share. Revenue fell to $8.74 billion from $8.91 billion a year earlier.

Excluding certain costs, latest-quarter earnings rose to 57 cents a share, up 19% from a year ago and a penny ahead of the Thomson First Call consensus estimate.

"We continue to build upon our track record of solid financial performance, entering 2005 with forward momentum. Recent client wins place us firmly in a position of positive net new sales, our proposed acquisition of


will create a strong platform for future growth in specialty pharmacy and we are moving ahead on the completion of our Medicare offering in preparation for the launch of Medicare Part D on Jan. 1, 2006," said CEO David B. Snow Jr.

Medco closed Monday at $53.92.