UPDATE: Express Scripts Tops Q4 Expectations, Shares Rise After Hours

Shares of

surged more than 2% in after-hours trading after the company reported better-than-expected earnings for the fourth quarter. However, the company issued a weak forecast for the first quarter. Express Scripts expects Q1 earnings of $1.07 to $1.11 per share, versus analysts' expectations of $1.16 per share. For the year, Express Scripts projects earnings of $5.35 to $5.49 per share, compared to analysts' estimates of $5.44 per share. The St. Louis, Missouri-based company reported a quarterly profit of $581.8 million, or $0.79 per share, versus a year-ago profit of $501.9 million, or $0.63 per share. Excluding items, the company's earnings from continuing operations surged to $1.39 per share from $1.12 per share. Its revenue rose 2.1% to $26.31 billion. However, analysts were expecting earnings of $1.38 per share on revenue of $25.68 billion. Net cash flow provided by operating activities came in at $2,924.4 million in the quarter. During the fourth quarter, Express Scripts repurchased 10.1 million shares of common stock for $819.5 million. George Paz, chairman and chief executive officer said, "We believe our growth and focused acquisition approach has positioned us uniquely in the healthcare services landscape to improve health outcomes and lower cost in an aligned model that keeps our clients and patients first, but also returns exceptional results to our shareholders." Express Scripts shares rose 2.17% to $88.60 in after-hours trading.