Express Scripts Plunges After Saying 2013 Forecasts Are Too Aggressive
Shares of pharmacy benefits provider Express Scripts (NASDAQ: ESRX) were down 14.5 percent in Monday's after-hours session after the company called analysts' 2013 estimates "overly aggressive." Analysts are expecting the company to post a per share profit of $4.49 next year.
"Express Scripts expects to grow earnings per share and EBITDA in 2013. However, given the factors discussed above, the Company views current consensus estimates for 2013 as overly aggressive," the company said in a statement.
Express Scripts "believes its 2013 outlook will also be influenced by the current weak business climate and the unemployment outlook. These factors would likely result in significant in-group member attrition, continued low utilization rates and increased client demands and expectations."
The company reported an adjusted third-quarter profit of $1.02 a share, topping the consensus estimate of 99 cents. Express Scripts forecast a 2012 profit of $3.65 to $3.75 a share up from $3.60 to $3.75.
Total adjusted claims are expected to be approximately 1.4 billion and the guidance range assumes a full year 2012 adjusted effective tax rate of approximately 39.6 percent, according to the statement.
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