Express Scripts Holding Beats on Revenue, Matches Expectations on EPS

Express Scripts Holding (Nasdaq: ESRX  ) reported earnings on April 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Express Scripts Holding beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped significantly.

Gross margins increased, operating margins dropped, net margins contracted.

Revenue details
Express Scripts Holding reported revenue of $26.06 billion. The 20 analysts polled by S&P Capital IQ anticipated a top line of $25.50 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $12.13 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.99. The 23 earnings estimates compiled by S&P Capital IQ forecast $0.98 per share. Non-GAAP EPS of $0.99 for Q1 were 36% higher than the prior-year quarter's $0.73 per share. GAAP EPS of $0.45 for Q1 were 18% lower than the prior-year quarter's $0.55 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 7.5%, 60 basis points better than the prior-year quarter. Operating margin was 3.2%, 170 basis points worse than the prior-year quarter. Net margin was 1.4%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $25.34 billion. On the bottom line, the average EPS estimate is $1.05.

Next year's average estimate for revenue is $100.90 billion. The average EPS estimate is $4.26.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 788 members out of 836 rating the stock outperform, and 48 members rating it underperform. Among 224 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Express Scripts Holding 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 Holding is outperform, with an average price target of $64.22.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Express Scripts. The Motley Fool owns shares of Express Scripts. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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