Express Scripts Narrows Annual Guidance

Pharmacy-benefits manager Express Scripts Holding Co. on Monday revised its projections for the year following mixed results for the second quarter.

The St. Louis company, the largest manager of prescription-drug benefits in the U.S., now projects adjusted profit of $6.33 to $6.43 a share on between 1.26 billion and 1.29 billion adjusted claims for the year, compared with its earlier view of $6.31 to $6.43 a share on 1.255 billion to 1.295 billion adjusted claims.

Meanwhile, Express Scripts cut its unadjusted profit to a range of $4.45 to $4.55 a share, down from $4.53 to $4.61 a share.

For the current quarter, it projects adjusted profit of $1.72 to $1.76 a share, compared with analysts' projected $1.72, on 311 million to 321 million adjusted claims, a 2% to 5% decline from the year-ago period.

Adjusted claims account for monthly prescriptions filled in retail pharmacies and 90-day fills through the company's mail-order business.

Founded in 1986, Express Scripts went public in 1992. Its two largest customers are Anthem Inc., with which it is in the middle of a contract dispute, and the Defense Department. Collectively, Anthem, the second-largest U.S. health insurer, and the Defense Department accounted for nearly 30% of revenue last year, according to regulatory filings.

Over all, Express Scripts reported a profit of $720.7 million, or $1.13 a share, compared with $600.1 million, or 88 cents a share, a year earlier. Excluding certain items, profit rose to $1.57 a share, from $1.44 a year earlier, in line with the company's guidance.

The most recent quarter's results were based on 6.7% fewer shares outstanding.

Revenue edged down 0.9% to $25.22 billion, compared with analysts' projected $25.42 billion.

Adjusted claims fell 2% to 315.3 million, within the company's range of 312 million to 322 million.

Gross profit margin improved to 8.6% from 8.4% a year earlier.

Shares, down 11% this year, edged up a penny a share in after-hours trading to $77.40.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

July 25, 2016 17:35 ET (21:35 GMT)

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