The company disclosed that first-quarter revenue came in at $8.7 billion, down 2.2% from the same period in the prior year, as lower-priced generic drugs made up a higher proportion of the top line. Earnings, meanwhile, surged 26.6% to $131.2 million; this is hardly unsatisfactory growth.
Furthermore, future trends look good. The firm is closing in on its acquisition of AccredoHealth
Nevertheless, there is a good reason to be cautious about Medco. Last year, the firm settled a multi-state investigation into its business practices. But, as TheStreet.com has reported, Medco and its peers, including Caremark Rx
Over the long term, Medco's dominant position in the health-care system appears unshakeable. Still, with Medco shares up about 18% so far this year, and a federal probe underway, the best course seems to be to wait on the sidelines.
Fool contributor Brian Gorman is a freelance writer in Chicago. He does not own shares of any companies mentioned in this article.