COOL VALLEY (dpa-AFX) - Pharmacy benefits manager Express Scripts Holding Co. (ESRX), Monday reported a higher third-quarter profit, as revenues surged on the acquisition of rival Medco earlier this year. Express Scripts' quarterly earnings came in ahead of Street estimates, while revenues fell short of expectations.
The company lifted its earnings outlook for fiscal year 2012, but warned of weak prospects for 2013 owing to economic volatility and expected claims loss from the UnitedHealthcare book of business.
The company in a statement said, 'These factors would likely result in significant in-group member attrition, continued low utilization rates and increased client demands and expectations. it provided.'
Express Scripts views the current consensus estimates of $4.50 per share for fiscal year 2013 as 'overly aggressive.'
The company's shares were down 14 percent in after-hours trade on the Nasdaq.
The company's quarterly results were buoyed up by its $29 billion acquisition of Medco in April, making it the largest pharmacy benefits manager, or PBM, in the US. PBMs, which act as middlemen for drug makers, pharmacies and health-plan sponsors, are responsible for processing and paying the prescription-drug benefits and claims.
The St. Louis, Missouri based company reported third-quarter net income of $391.4 million or $0.47 per share, compared with $324.7 million or $0.66 per share last year.
Results for the 2012 quarter included costs of $0.37 per share related to Medco's intangible assets.
Excluding items, adjusted earnings for the quarter were $1.02 per share, compared with $0.79 per share last year.
On average, 21 analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.
Express Scripts' revenues for the quarter surged to $27 billion from $11.6 billion last year. Nineteen analysts on a consensus estimated revenues of $27.49 billion for the quarter.
Total claims for the quarter grew to 322.7 million from 160.5 million last year.
For fiscal year 2012, Express Scripts now expect adjusted earnings of $3.65 to $3.75 per share, compared with prior outlook of $3.60 to $3.75 per share.
Analysts currently expect earnings of $3.70 per share for fiscal year 2012.
ESRX closed Monday at $62.88, up 1.39%, on a volume of 5.2 million shares. In after hours, the stock dropped $9.18 or 14.60% to $53.70. In the past year, the stock traded in a range of $41.45 - $66.06.
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