Pharmacy benefits manager Express Scripts Holding Co. (ESRX), Monday reported a higher profit for the first quarter, as revenues surged reflecting the acquisition of Medco Health Solutions Inc. last year. Both earnings and revenues for the quarter came in above Wall Street estimates.
Moving ahead, Express Scripts, the largest U.S. processor of drug prescriptions, lifted its full-year profit that is indicated to exceed analysts' current estimates.
Commenting on the results, Chief Executive George Paz said, "Our strong financial performance in the first quarter represents the work we do every day to make the use of prescription drugs safer and more affordable. As we mark the one-year anniversary of the Medco transaction, our Company today is better than the sum of its parts.
Express Scripts' revenues more-than-doubled to $26.06 billion from $12.13 billion a year ago. Analysts polled by Thomson Reuters expected revenue of $25.55 billion for the quarter.
Revenues for the quarter were boosted by the $29-billion acquisition of Medco in April 2012, which made Express Scripts the largest pharmacy benefits manager in the U.S. The company acts as middlemen for drug makers, pharmacies and insurer, and sells drugs through mail-order pharmacies.
Adjusted claims from continuing operations for the first quarter surged 102 percent to $390.0 million because of the acquisition.
For the first quarter, St. Louis, Missouri-based Express Scripts reported a profit of $373.0 million or $0.45 per share, up from $267.8 million or $0.55 per share last year. On per share basis, earnings dropped due to the number of shares outstanding in the quarter that nearly doubled.
Adjusted earnings from continuing operations for the quarter improved to $0.99 per share from $0.73 per share a year ago. Analysts expected earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.
Looking forward, Express Scripts expect improvements in gross profit over the balance of the year. The company lifted its adjusted earnings from continuing operations guidance to a range of $4.23 to $4.33 per share, from its prior estimate of $4.20 to $4.30 per share. Analysts currently expect earnings of $4.26 per share for 2013.
ESRX closed Monday's trading at $58.44, up $0.53 or 0.92%, on the Nasdaq. The stock further gained $0.81 or 1.39% in after-hours trade.
For comments and feedback: editorial@rttnews.com