Express Scripts Earnings: 3 Things You Need to Know

Express Scripts (NASDAQ: ESRX  ) investors had a rough day Tuesday, as a surprised market cut 6% from the company's value after a disappointing first quarter earnings report. There were three huge areas of concern for investors, but first let's talk about the overall numbers.

UnitedHealth Group  (NYSE: UNH  ) left Express Scripts and brought its PBM work in-house at Optumrx, which significantly affected Express Scripts' business this quarter for the year-over-year comparisons. Adjusted claims dropped 18% (still a 9% drop when we ex-out the UNH loss), driving a 9% revenue drop and a 6% reduction in adjusted net income.

But there are some even potentially bigger issues at work at Express Scripts. In the video below, Motley Fool health care analysts David Williamson and Michael Douglass identify these three issues and what investors should watch for at Express Scripts moving forward.

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Michael Douglass

As the Motley Fool's Health Care Editor/Analyst, I focus on all things health care -- although my greatest interest is in the megatrends reshaping the American health care system, including the Affordable Care Act, Accountable Care Organizations, a shifting regulatory landscape, and the new drug discoveries fundamentally changing disease management and treatment.

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