NEW YORK (AP) — Express Scripts says its third-quarter net income climbed 9 percent, and the nation's largest pharmacy benefits manager gave a more optimistic earnings forecast for the year.
The St. Louis company said Thursday it earned $426.7 million, or 52 cents per share. That compares to earnings of $391.4 million, or 47 cents per share, in last year's quarter. Excluding one-time items, Express Scripts Holding Co. earned $1.08 per share.
Revenue fell 3 percent to $25.92 billion.
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Analysts forecast, on average, adjusted earnings of $1.08 per share on about $25 billion in revenue, according to FactSet.
Pharmacy benefits managers, or PBMs, run prescription drug plans for employers, insurers and other customers. They process mail-order prescriptions and handle bills for prescriptions filled at retail pharmacies.
Adjusted claims from continuing operations fell 9 percent during the quarter to 358.1 million, including the expected roll-off of claims from UnitedHealth Group. The measure counts 90-day mail order prescriptions as three one-month prescriptions.
Express Scripts raised the low end of its net income guidance based on its results and a lower-than-expected tax rate. It now expects adjusted net income of $4.30 to $4.34 per share, compared to its previous range of $4.26 to $4.34 per share.
Analysts expect $4.31 per share, on average.
Express Scripts said it expects to earn between $1.09 and $1.13 per share in the fourth quarter excluding one-time items. Analysts expect $1.12 per share on average.
The company cut its cash flow estimate by $500 million because of delays in moving Medco's legacy payment cycles to its own payment cycles. Express Scripts now expects 2013 cash flow between $4 billion and $4.5 billion.
In after-hours trading, shares of the company slipped 4.7 percent to $60.75. The stock is up 18 percent in the year to date through the close of regular-session trading Thursday.
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