Express Scripts Earnings Preview: Analysts Expect Higher EPS, Revenue

Express Scripts (NASDAQ: ESRX) unveils its next round of earnings this Tuesday, October 25, 2011. Here is Benzinga's everything-that-matters guide for this Tuesday's third quarter earnings announcement.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 78 cents/share and revenues of $11.26 billion. Express Scripts' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 65 cents/share on revenues of $11.25 billion. We'll have to wait for Tuesday to see if Express Scripts reports higher EPS and a slight increase in revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Express Scripts were trading at $39.63. Since January 1st, shares of Express Scripts have declined 26.7%. For a full 12 months, the return has declined by 19.5%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Express Scripts is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Want to check out the performance of Express Scripts closest competitors? Take a look at some of the company's peers in the healthcare sector.

• American Dental Partners (NASDAQ: ADPI): Moderate Buy with a $0.28 recent quarter EPS
• AMERIGROUP (NYSE: AGP): Hold with a $0.83 recent quarter EPS
• Centene (NYSE: CNC): Hold with a $0.64 recent quarter EPS
• Magellan Health Services (NASDAQ: MGLN): Moderate Buy with a $1.07 recent quarter EPS

The medical services company's industry has seen price/earnings growth of 1.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Express Scripts is a pharmacy benefit management (PBM) company, providing services like retail network pharmacy management and patient care contact centers to its clients in North America.

Take Action:

That's your advanced look at Express Scripts' upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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