Health and Healthcare

Express Scripts Meets Earnings and Guidance

Chris Lange

Published: February 16, 2016 4:44 pm

Last Updated: January 13, 2020 1:07 pm

Express Scripts Holding Co. (NASDAQ: ESRX) reported fourth quarter financial results after the markets closed on Tuesday. The company had $1.56 in earnings per share (EPS) on $26.18 billion in revenue compared to consensus estimates from Thomson Reuters that called for $1.56 in EPS on $26.58 billion in revenue. The same period from the previous year had $1.39 in EPS on $26.31 billion in revenue.

For the fourth quarter adjusted claims totaled 341.5 million, up only 1% year over year.

In terms of guidance, the company expects 2016 EPS for the full year to be in the range of $6.10 to $6.28 and total adjusted claims are expected to be in the range of 1.255 billion to 1.295 billion. There are consensus estimates for the full year that call for $6.15 in EPS on $103.90 billion in revenue.

Looking at the first quarter, Express Scripts expects total adjusted claims to be in the range of 315 million to 325 million and EPS to be in the range of $1.18 to $1.22. There are consensus estimates for the first quarter that call for $1.28 in EPS on $25.17 billion in revenue.

Net cash flow in the fourth quarter from operating activities totaled $2.874 billion, which was down 2% year over year. On the books, cash and cash equivalents totaled $3.19 billion in revenue for the fourth quarter compared to $1.83 billion in the same period from the previous year.

George Paz, Chairman and CEO of Express Scripts, commented on earnings:

Our business model of alignment, developed 30 years ago, has never been more relevant than it is today. Our job is to continue to take advantage of the opportunities and uniquely help clients withstand the constant challenges in the healthcare marketplace by taking bold actions to effectively balance pharmacy cost and care.  Our focused alignment continues to control client costs, improve patient care and drive long term value to our shareholders.

Tim Wentworth, President of Express Scripts, added:

Building upon our strongest retention year ever, an outstanding 1/1/16 performance and the industry’s deepest set of cost-saving solutions, Express Scripts has momentum that maintains our confidence in our 2016 guidance and justifies our excitement about our future. Financially and operationally, we are well positioned to drive growth and deliver value to clients and shareholders.

Shares of Express Scripts closed Tuesday up 2% at $68.65, with a consensus analyst price target of $91.32 and a 52-week trading range of $65.55 to $94.61. Following the release of the earnings report, the stock was down 0.9% at $68.01.