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.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Express Scripts prepared for the future? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.
- Add Express Scripts to My Watchlist.
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. 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.