It has been about a month since the last earnings report for Express Scripts Holding Company . Shares have lost about 4.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Express Scripts Earnings Top, Revenues Lag in Q4
St. Louis, MO-based pharmacy benefit manager Express Scripts Holding Company posted fourth-quarter 2016 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by $0.01. Furthermore, adjusted earnings jumped 20.5% from the year-ago quarter.
Revenues of $24.8 billion missed the Zacks Consensus Estimate of $26.2 billion and were down 5% on a year-over-year basis.
For the full year, Express Scripts reported revenues of $100.3 billion, down from the year-ago figure of $101.7 billion.
Quarterly Highlights
Adjusted gross profit in the fourth quarter was up 3.3% to $2.3 billion. Adjusted selling, general and administrative expenses were $863.5 million, down 17.7%.
Total adjusted claims amounted to $354.9 million, down 6% year over year due to faster roll-off of the Coventry business.
During the quarter, the company repurchased a total 74.4 million shares under its repurchase program of $5.57 billion during 2016.
Guidance
For the full year, Express Scripts reaffirmed its adjusted earnings per share guidance in the band of $6.82 to $7.02. Notably, this represents growth of 8% at the mid-point of the range on a year-over-year basis.
For the first quarter of 2017, adjusted earnings are estimated in the range of $1.30 to $1.34 per share, representing growth of 7% to 10% on a year-over-year basis. Adjusted claims for the first quarter are projected between $345 million and $355 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
VGM Scores
At this time, Express Scripts' stock has a great Growth Score of 'A', a grade with the same score on momentum front. The stock was also allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of' A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is equally suitable for value, momentum and growth investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions is net. Notably, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Express Scripts (ESRX) Down 4.9% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Express Scripts Holding Company . Shares have lost about 4.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Express Scripts Earnings Top, Revenues Lag in Q4
St. Louis, MO-based pharmacy benefit manager Express Scripts Holding Company posted fourth-quarter 2016 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by $0.01. Furthermore, adjusted earnings jumped 20.5% from the year-ago quarter.
Revenues of $24.8 billion missed the Zacks Consensus Estimate of $26.2 billion and were down 5% on a year-over-year basis.
For the full year, Express Scripts reported revenues of $100.3 billion, down from the year-ago figure of $101.7 billion.
Quarterly Highlights
Adjusted gross profit in the fourth quarter was up 3.3% to $2.3 billion. Adjusted selling, general and administrative expenses were $863.5 million, down 17.7%.
Total adjusted claims amounted to $354.9 million, down 6% year over year due to faster roll-off of the Coventry business.
During the quarter, the company repurchased a total 74.4 million shares under its repurchase program of $5.57 billion during 2016.
Guidance
For the full year, Express Scripts reaffirmed its adjusted earnings per share guidance in the band of $6.82 to $7.02. Notably, this represents growth of 8% at the mid-point of the range on a year-over-year basis.
For the first quarter of 2017, adjusted earnings are estimated in the range of $1.30 to $1.34 per share, representing growth of 7% to 10% on a year-over-year basis. Adjusted claims for the first quarter are projected between $345 million and $355 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
Express Scripts Holding Company Price and Consensus
Express Scripts Holding Company Price and Consensus | Express Scripts Holding Company Quote
VGM Scores
At this time, Express Scripts' stock has a great Growth Score of 'A', a grade with the same score on momentum front. The stock was also allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of' A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is equally suitable for value, momentum and growth investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions is net. Notably, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.