Express Scripts Holding Co (NASDAQ: ESRX) stock lost over 1.1% on May 3rd, 2018 (as of 1:02 PM GMT-4; Source: Google finance) in the first quarter of FY 18 has reported the adjusted earnings per share of $1.77, while reported the adjusted revenue of $24.77 billion in the first quarter of FY 18, missing the analysts’ estimates for revenue of $24.81 billion.
In the first quarter of 2018, the total adjusted claims were down 3% from the comparable quarter in 2017 due primarily to the loss of certain public sector clients in the core business during last year’s selling season, but were consistent with the Company’s previously provided guidance for the quarter. The adjusted EBITDA in the first quarter of 2018 rose 3% from the comparable quarter in 2017 primarily due to the inclusion of eviCore in the 2018 quarter, and to supply chain initiatives, including continued strong performance from the Company’s SafeGuardRx suite of solutions and growth in the Accredo specialty pharmacy. Net cash flow provided by operating activities in the first quarter of 2018 increased by 51% from the comparable quarter in 2017 due to higher net income and changes in working capital primarily related to timing of accounts payable payments.
For the second quarter of 2018, ESRX expects the consolidated adjusted earnings per diluted share to be in the range of $2.18 to $2.22, which represents growth of 26% to 28% over the second quarter of 2017. Consistent with recent years, the company expects to receive certain revenues related to the structure of its Anthem contract which will be realized in the second quarter of 2018. ESRX’s enterprise value initiative is estimated to cost approximately $600 million to $650 million and to deliver cumulative savings of nearly $1.2 billion by 2021, with an annual run rate of between $550 million to $600 million thereafter.
For the year 2018, Express Scripts expects the earnings in the range of $9 to $9.14 a share, down from a previously estimated range of $9.27 to $9.47 a share, because it suspended its share buyback program owing to its pending merger with Cigna Corp. The analysts had projected the earnings of $9.30 a share.