Express Scripts Falls After Cutting Full Year Forecast - Update

(RTTNews) - Pharmacy benefits manager Express Scripts Holding Co. (ESRX) Tuesday reported first-quarter profit that declined from the prior year and cut its earnings forecast for the year. The stock fell more than 5 percent in the extended trade.

Net earnings fell to $328.3 million or $0.42 per share from $373 million or $0.45 per share last year.

Excluding items, adjusted earnings for the quarter were $0.99 per share. On average, 25 analysts polled by Thomson Reuters estimated earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter dropped to $23.69 billion from $26.02 billion in the prior year. Analysts estimated revenues of $23.81 billion for the quarter.

According to the company, the results are slightly below the mid-point of its guidance, due to lower adjusted prescription volume as a result of severe winter weather, later than expected enrollment in public exchanges and lower net new healthcare reform lives.

For the second quarter, Express Scripts projects adjusted earnings of $1.20 to $1.24 per share, while analysts project $1.26 per share.

For fiscal year 2014, the company expects earnings of $4.82 to $4.94 per share, down from the prior guidance of $4.88 to $5 per share. Analysts expect earnings of $4.89 per share.

The slashed guidance reflects a delay of expected client starts from the middle of the year to early 2015, as well as in-group attrition along with lower net new healthcare reform lives, the company said.

ESRX closed up 0.6 percent on Tuesday at $71.01 and dropped 5.6 percent in the extended trade.