Medco Health Solutions Earnings Preview: Analysts Expect Higher EPS, Revenue
Medco Health Solutions (NYSE: MHS) releases its next round of earnings this Wednesday, October 26, 2011. Here's Benzinga's essential guide to Medco Health Solutions' third quarter earnings report.
Earnings and Revenue:
Wall Street expects an EPS of $1.05/share and revenues of $17.06 billion. Medco Health Solutions' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 91 cents/share on revenues of $16.32 billion. We'll have to wait for Wednesday to see if Medco Health Solutions falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.94 | $0.88 | $0.94 | $0.88 |
| EPS Actual | $0.96 | $0.91 | $0.94 | $0.91 |
Stock Performance:
At last check, shares of Medco Health Solutions were trading at $47.24. Since January 1st, shares of Medco Health Solutions have declined 22.9%. For a full 12 months, the return has declined by 8.8%. 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 Medco Health Solutions is a Hold.
Competitors:
Want to check out the performance of Medco Health Solutions closest competitors? Take a look at some of the company's peers in the healthcare sector.
- Aetna (NYSE: AET): Moderate Buy with a $1.35 recent quarter EPS
- BioScrip (NASDAQ: BIOS): Moderate Buy with a $0.10 recent quarter EPS
- Catalyst Health Solutions (NASDAQ: CHSI): Moderate Buy with a $0.53 recent quarter EPS
The medical-HMO company's industry has seen price/earnings growth of 0.9% during the current fiscal year.
Finally, a description of the company's main areas of operation: Medco Health Solutions offers clinically-driven pharmacy services for private and public employers, health plans, labor unions, and government agencies.
Take Action:
Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.
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