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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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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