NEW YORK (AP) — Shares of Express Scripts Inc. slipped Tuesday after the pharmacy benefits manager reported disappointing first-quarter results.

THE SPARK: The St. Louis company posted a smaller-than-expected profit. Its revenue declined from last year and fell about $430 million short of Wall Street expectations.

THE BIG PICTURE: Pharmacy benefits managers often report weaker profit margins in the first quarter as contracts with new clients kick in. The contracts are least profitable in their early phases and the costs are highest. Express Scripts said it received a relatively smaller benefit from launches of new generic drugs, which are highly profitable for PBMs.

THE ANALYSIS: Jefferies & Co. analyst Arthur Henderson said a number of factors came together at once and hurt Express Scripts' result.

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