NEW YORK (TheStreet) -- Shares of Express Scripts (ESRX) were gaining 1.79% to $94.03 after-hours Tuesday after the pharmacy benefit management company beat analysts' estimates for earnings in the second quarter.
Express Scripts reported earnings of $1.44 a share for the second quarter, above analysts' estimates of $1.40 a share for the quarter. Revenue grew 1% year over year to $25.45 billion, compared to analysts' estimates of $26.15 billion.
The company raised its full year 2015 earnings guidance to a range of $5.46 to $5.54 a share from its previous guidance of a range of $5.37 to $5.47. Analysts expect Express Scripts to report earnings of $5.44 a share for the full year.
"Our focused size and scale helps us make prescription drugs safer and more affordable which benefits everyone in healthcare -- patients, plan sponsors and medical professionals," Chairman and CEO George Paz said in a statement. "We are pleased with our second quarter results and outperforming our guidance."
Insight from TheStreet's Research Team:
Express Scripts is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:
Express Scripts ( (ESRX) ; $92.29; 300 shares; 1.08%; Sector: Health Care): After over a month of rumors, we learned this week that Anthem (ANTM) - Get Report has indeed agreed to acquire Cigna (CI) - Get Report in a $54 billion deal. Anthem is Express's largest client and has for the past year signaled its desire for a market check for the pharmacy benefit manager (PBM) business. While we believe a reset in Anthem contract terms will be more likely following the acquisition, we would view a purchase of Cigna as far less risky for Express than Humana (HUM) - Get Report, given HUM's in-house PBM capabilities. We suspect a Cigna addition would create puts and takes for the Express contract, with a potential re-pricing offset by an 8% boost to Express's claims total. Our target remains $105.
TheStreet Ratings team rates EXPRESS SCRIPTS HOLDING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPRESS SCRIPTS HOLDING CO (ESRX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: ESRX Ratings Report