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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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 owns shares of Express Scripts. Motley Fool newsletter services recommend 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.