Bloomberg News

Express Scripts Misses Earnings Estimates as 2014 Forecast Cut

April 29, 2014

Express Scripts Holding Co. (ESRX:US), a pharmacy benefit manager that handles more than 1 billion prescriptions a year, reported first-quarter earnings that missed its expectation on cold weather and fewer Obamacare enrollees. The company cut its 2014 forecast.

Net income (JNJ:US) fell to $328.3 million, or 42 cents a share, from $373 million, or 45 cents, a year earlier, the St. Louis, Missouri-based company said in a statement. Profit excluding one-time items of 99 cents a share missed the $1.01 average of 24 analysts’ estimates (ESRX:US) compiled by Bloomberg.

The earnings were lower than forecast because of a decrease in prescription drug volume during the quarter’s severe winter weather, later-than-expected enrollment in public health-care exchanges and fewer new patients, the company said. It reduced its 2014 earnings (BSX:US) forecast to $4.82 to $4.94 a share, excluding one-time items, from $4.88 to $5.00 a share.

Express Scripts declined 4.8 percent to $67.61 in extended trading at 4:36 p.m. New York time after closing at $71.01. The shares have gained 21 percent in the past 12 months (BSX:US).

The company manages drug benefits for insurers, employers and government health plans and sell medicines through its mail-order pharmacy, servicing as a middlemen between patients and drugmakers.

To contact the reporter on this story: Michelle Fay Cortez in Minneapolis at mcortez@bloomberg.net

To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net Andrew Pollack


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • ESRX
    (Express Scripts Holding Co)
    • $66.35 USD
    • -0.17
    • -0.26%
  • JNJ
    (Johnson & Johnson)
    • $102.11 USD
    • -0.09
    • -0.09%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus