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
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