The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Express Scripts beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank.
Margins dropped across the board.
Express Scripts booked revenue of $12.10 billion. The 18 analysts polled by S&P Capital IQ expected to see revenue of $11.61 billion on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $11.29 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.82. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.85 per share on the same basis. GAAP EPS of $0.59 for Q4 were 3.3% lower than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.0%, 70 basis points worse than the prior-year quarter. Operating margin was 4.8%, 100 basis points worse than the prior-year quarter. Net margin was 2.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.29 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $46.04 billion. The average EPS estimate is $3.64.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 686 members out of 732 rating the stock outperform, and 46 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 give Express Scripts a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Express Scripts is outperform, with an average price target of $57.38.
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