Categories Earnings, Other Industries

Express Scripts Q3 profit jumps 27%, meets estimates

Express Scripts Holding Co. (ESRX) reported a 27% jump in earnings for the third quarter helped by strong client retention and higher interest from prospects in the pharmacy and healthcare solutions. The bottom line came in line with analysts’ expectations, while the top line exceeded consensus estimates.

Net income climbed 27% year-over-year to $1.07 billion or $1.89 per share. Adjusted EPS increased to $2.43 from $1.90 a year ago.

Revenues rose 3.6% to $25.6 billion. Core business adjusted EBITDA increased 4.1% to $1.39 billion, helped by product upsells and supply chain initiatives, including the performance of its SafeguardRx suite of solutions as well as contributions from eviCore and Accredo.

Total adjusted claims fell 2.6% to 334.6 million due primarily to the previously disclosed losses of certain public sector clients in the core business.

The company now expects its 2019 retention rate for the 2018 selling season to exceed 98%, an all-time high for the company. Express Scripts is retaining its clients, winning prospects, and enrolling clients in more solutions and, as a result, expects to grow core business adjusted claims by 2% to 3% in 2019.

Shareholder nod breathes life into Cigna-Express Scripts merger

On March 8, 2018, the company entered into an Agreement and Plan of Merger with Cigna Corporation (CI) whereby Cigna will acquire Express Scripts in a cash and stock transaction. On August 24, at its special meeting, Express Scripts’ stockholders approved the adoption of the Merger Agreement. On September 17, the U.S. Department of Justice cleared the proposed merger with Cigna. The merger is expected to be completed by December 31, 2018.

Due to the company’s pending acquisition by Cigna, Express Scripts will not be holding a third-quarter conference call to review results, and will no longer provide financial guidance.

Shares of Express Scripts ended Wednesday’s regular session up 1.62% at $96.97 on the Nasdaq.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Express Scripts Q3 profit jumps 27%, meets estimates

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top