Express Scripts Holding Co. (ESRX) reported a 27% jump in earnings for the third quarter helped by strong client retention and higher interest from prospects in the pharmacy and healthcare solutions. The bottom line came in line with analysts’ expectations, while the top line exceeded consensus estimates.
Net income climbed 27% year-over-year to $1.07 billion or $1.89 per share. Adjusted EPS increased to $2.43 from $1.90 a year ago.
Revenues rose 3.6% to $25.6 billion. Core business adjusted EBITDA increased 4.1% to $1.39 billion, helped by product upsells and supply chain initiatives, including the performance of its SafeguardRx suite of solutions as well as contributions from eviCore and Accredo.
Total adjusted claims fell 2.6% to 334.6 million due primarily to the previously disclosed losses of certain public sector clients in the core business.
The company now expects its 2019 retention rate for the 2018 selling season to exceed 98%, an all-time high for the company. Express Scripts is retaining its clients, winning prospects, and enrolling clients in more solutions and, as a result, expects to grow core business adjusted claims by 2% to 3% in 2019.
Shareholder nod breathes life into Cigna-Express Scripts merger
On March 8, 2018, the company entered into an Agreement and Plan of Merger with Cigna Corporation (CI) whereby Cigna will acquire Express Scripts in a cash and stock transaction. On August 24, at its special meeting, Express Scripts’ stockholders approved the adoption of the Merger Agreement. On September 17, the U.S. Department of Justice cleared the proposed merger with Cigna. The merger is expected to be completed by December 31, 2018.
Due to the company’s pending acquisition by Cigna, Express Scripts will not be holding a third-quarter conference call to review results, and will no longer provide financial guidance.
Shares of Express Scripts ended Wednesday’s regular session up 1.62% at $96.97 on the Nasdaq.
Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!
Most Popular
Key metrics from Shopify’s (SHOP) Q1 2024 earnings results
Shopify Inc. (NYSE: SHOP) reported first quarter 2024 earnings results today. Revenue increased 23% to $1.9 billion compared to the prior-year period. Gross Merchandise Volume (GMV) increased 23% year-over-year to
EA Earnings: Electronic Arts reports lower revenues for Q4 2024
Video game publisher Electronic Arts (NASDAQ: EA) Tuesday reported a decline in revenues for the fourth quarter of 2024. Meanwhile, the top line came in slightly above analysts' estimates. Fourth-quarter
What to look for when Home Depot (HD) reports Q1 2024 earnings
Shares of The Home Depot (NYSE: HD) stayed red on Tuesday. The stock has gained 17% over the past 12 months. The home improvement retailer is scheduled to report its