Express Scripts Q4 Results Top Estimates, But Guides Q1 EPS Below View

(RTTNews) - Pharmacy benefits manager Express Scripts Holding Co. (ESRX) reported Monday a profit for the fourth quarter that grew from last year, reflecting lower claims and revenue growth.

Both adjusted earnings per share from continuing operations and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the fourth quarter and full-year 2015.

"We believe our growth and focused acquisition approach has positioned us uniquely in the healthcare services landscape to improve health outcomes and lower cost in an aligned model that keeps our clients and patients first, but also returns exceptional results to our shareholders.," Chairman and CEO George Paz said in a statement.

St. Louis, Missouri-based Express Scripts' reported net income of $581.8 million or $0.79 per share for the fourth quarter, higher than $501.9 million or $0.63 per share in the prior-year quarter, which included $0.02 per share of loss from discontinued operations.

Excluding items, adjusted earnings from continuing operations for the quarter was $1.39 per share, compared to $1.12 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $1.38 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $26.31 billion from $25.78 billion in the same quarter last year, and topped fifteen Wall Street analysts' consensus estimate of $25.68 billion.

Total claims volume decreased 7 percent to 337.0 million from last year's 360.7 million. Total adjusted claims volume declined 7 percent to 337.0 million from 360.7 million last year. Excluding UnitedHealth Group, Inc. (UNH), claims volume declined 4 percent.

The company had concluded its contract with health insurer UnitedHealth at the end of 2013.

Generic fill rate for the quarter expanded 190 basis points to 82.8 percent from last year's 80.9 percent.

Looking ahead to the first quarter, Express Scripts expects adjusted earnings in a range of $1.07 to $1.11 per share, while analysts expect $1.16 per share.

For fiscal 2015, the company projects adjusted earnings in a range of $5.35 to $5.49 per share. Street is currently looking for full-year 2015 earnings of $5.44 per share.

Express Scripts also announced that John Parker, Jr. retired from its Board of Directors on February 18, 2015, primarily due to health reasons. Parker has been a member of the Board of Directors since July, 2001.

ESRX closed Monday's regular trading session at $86.72, up $0.64 or 0.74% on a volume of 5.35 million shares. The stock gained a further $2.28 or 2.63% in after-hours trading.