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Express Scripts Holding's Third Quarter Earnings Report
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ESRX
Express Scripts Holding Company (Nasdaq:ESRX) announced its results for the most recent quarter on November 5, 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 are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Express Scripts Holding managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of $1.02 per share versus the 82 cents per share estimate and revenues of $27 billion versus the $11.47 billion estimate. 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 $391.4 million. This is 20.5% higher than the year-ago quarter. Last quarter's profit increase comes after three consecutive quarters of year-over-year profit decreases. Profits declined 48.9% in the second quarter,18% three quarters ago, and 11.9% four quarters ago.
Management Quote: "Despite near-term headwinds and a challenging macroeconomic environment, we remain confident we are well-positioned for continued growth", stated Paz. "We have historically managed expenses rigorously while investing toward the future, focusing on innovation, service and optimal clinical outcomes, and will continue to do so, even when faced with challenges on other fronts."
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 91 cents per share, down from 95 cents 90 days ago. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $3.65 a share to $3.53 over the last 90 days.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Express Scripts Holding managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of $1.02 per share versus the 82 cents per share estimate and revenues of $27 billion versus the $11.47 billion estimate. 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 $391.4 million. This is 20.5% higher than the year-ago quarter. Last quarter's profit increase comes after three consecutive quarters of year-over-year profit decreases. Profits declined 48.9% in the second quarter,18% three quarters ago, and 11.9% four quarters ago.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 91 cents per share, down from 95 cents 90 days ago. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $3.65 a share to $3.53 over the last 90 days.
by
Investopedia Staff
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