Express Scripts Holding
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Express Scripts Holding met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Gross margins grew, operating margins contracted, net margins shrank.
Express Scripts Holding reported revenue of $27.41 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $27.35 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $12.10 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 $1.05. The 21 earnings estimates compiled by S&P Capital IQ anticipated $1.05 per share. GAAP EPS of $0.61 for Q4 were 1.7% higher than the prior-year quarter's $0.60 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 8.4%, 140 basis points better than the prior-year quarter. Operating margin was 3.3%, 180 basis points worse than the prior-year quarter. Net margin was 1.8%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $25.63 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $101.59 billion. The average EPS estimate is $4.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 783 members out of 830 rating the stock outperform, and 47 members rating it underperform. Among 231 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 222 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 $62.70.
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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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