Free Annual Reports
Express Scripts Holding Second Quarter Earnings
Tickers in this Article »
ESRX
Express Scripts Holding Company (Nasdaq:ESRX) announced its results for the second quarter on August 7, 2012. Express Scripts is a pharmacy benefit management (PBM) company, providing services like retail network pharmacy management and patient care contact centers to its clients in North America.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports
The Numbers: Express Scripts Holding posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported 21 cents per share versus the 82 cents per share estimate and revenues of $27.69 billion versus the $11.47 billion estimate. EPS fell 68.2% while revenue climbed more than twofold from the same period last year. Express Scripts Holding's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter was $170.9 million. According to the reported number, this is down 48.9% from last year's figures. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 18% in the first quarter and 11.9% in the fourth quarter of the last fiscal year.
Management Quote: "Our strong second quarter results, the first as a combined organization, demonstrate the continued execution of our business model of alignment," stated George Paz, chairman and chief executive officer. "We are fully underway with the integration process and will continue to focus on lowering healthcare costs while improving health outcomes. As a result of our steadfast commitment to providing exemplary service and innovative offerings to clients and patients, we are experiencing strong retention rates."
A Look Back: Net income has dropped 11.2% year-over-year on average across the last five quarters. Performance was hurt by a 48.9% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the third quarter has fallen from 95 cents per share to 91 cents, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. At $3.53 per share, the average estimate for the fiscal year has fallen from $3.65 90 days ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports
The Numbers: Express Scripts Holding posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported 21 cents per share versus the 82 cents per share estimate and revenues of $27.69 billion versus the $11.47 billion estimate. EPS fell 68.2% while revenue climbed more than twofold from the same period last year. Express Scripts Holding's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter was $170.9 million. According to the reported number, this is down 48.9% from last year's figures. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 18% in the first quarter and 11.9% in the fourth quarter of the last fiscal year.
Management Quote: "Our strong second quarter results, the first as a combined organization, demonstrate the continued execution of our business model of alignment," stated George Paz, chairman and chief executive officer. "We are fully underway with the integration process and will continue to focus on lowering healthcare costs while improving health outcomes. As a result of our steadfast commitment to providing exemplary service and innovative offerings to clients and patients, we are experiencing strong retention rates."
A Look Back: Net income has dropped 11.2% year-over-year on average across the last five quarters. Performance was hurt by a 48.9% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the third quarter has fallen from 95 cents per share to 91 cents, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. At $3.53 per share, the average estimate for the fiscal year has fallen from $3.65 90 days ago.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
