Earnings Preview: Medco Health Solutions Revenue Expected to Rise

Medco Health Solutions (NYSE: MHS) earnings are right around the corner! Don't be caught off-guard: The company unveils its next round of earnings this Thursday, July 21, 2011.

Want to get all the facts ahead of this Thursday's announcement? We thought so. Here's an advanced look at Medco Health Solutions' second quarter earnings report.

Let's Do the Numbers:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 94 cents per share and revenues of $17.08 billion. Can Medco Health Solutions manage the estimated 121% rise in EPS and 104% increase in revenues as analysts are predicting? We'll have to wait until Thursday to find out.

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

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$0.88	$0.94	$0.88	$0.79
EPS Actual	$0.91	$0.94	$0.91	$0.80

Stock Performance:

Shares of Medco Health Solutions were trading at $54 as of July 15, 2011. Shares are down 11.9% year to date. For a full 12 months, the return has risen by 4.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Medco Health Solutions is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Medco Health Solutions compares to rivals in the same sector? Here are a few of the company's peers.

Aetna (NYSE: AET): Moderate Buy with a $1.43 recent quarter EPS
CVS Caremark (NYSE: CVS): Moderate Buy with a $0.57 recent quarter EPS

Finally, a description of the main business areas of the company, in case you need a little refresher: Medco Health Solutions Inc. offers clinically-driven pharmacy services for private and public employers, health plans, labor unions and government agencies.

Take Action:

Now that you've gotten an advanced peak at Medco Health Solutions' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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