Express Scripts Flies Past EPS, Revenue Estimates

Express Scripts Holding Co. (NASDAQ: ESRX) reported second quarter adjusted EPS of $0.88 and $27.7 billion in revenue after markets closed today. EPS for the same period a year ago totaled $0.71, and last year’s revenue totaled $11.36 billion. The results compare to the Thomson Reuters consensus estimates for EPS of $0.82 and $26.57 billion in revenue. This quarter’s results include for the first time the impact of the company’s Medco acquisition.

The company’s chairman/CEO said:

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.

Customer retention rates are running above 95%, which the company says is “consistent with historical norms.” The company also revised guidance for the full 2012 fiscal year, raising adjusted EPS to $3.60-$3.75. The consensus estimate had been for EPS of $3.53.

The addition of Medco skews many comparisons, but gross margins rose year-over-year from 7.1% to 7.8%, and EBITDA per adjusted claim rose 7% over the same period a year ago. Express Scripts has also signed a new multi-year pharmacy network agreement with Walgreen Co. (NYSE: WAG).

Shares are up about 5% in after-hours trading, at $58.84. The current 52-week range is $34.47-$59.50. Thomson Reuters had a consensus analyst price target of $66.10 before today’s results were announced.

Paul Ausick