Express Scripts Holding
The 10-second takeaway
For the quarter ended June 30 (Q2), Express Scripts Holding beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins contracted, and net margins shrank.
Express Scripts Holding recorded revenue of $27.69 billion. The 19 analysts polled by S&P Capital IQ wanted to see net sales of $26.57 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $11.36 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.88. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.82 per share. GAAP EPS of $0.21 for Q2 were 68% lower than the prior-year quarter's $0.66 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 7.6%, 70 basis points better than the prior-year quarter. Operating margin was 1.9%, 320 basis points worse than the prior-year quarter. Net margin was 0.6%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $26.74 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $92.93 billion. The average EPS estimate is $3.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 716 members out of 759 rating the stock outperform, and 43 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Express Scripts Holding a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Express Scripts Holding is outperform, with an average price target of $65.59.
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