FBR Capital Maintains a 'Market Perform' on Express Scripts (ESRX); 2Q Looks Like a Small Step Forward; 2H More of a Giant Leap
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Price: $61.87 +1.93%
Rating Summary:
10 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade ESRX Now!
FBR Capital maintains a 'Market Perform' on Express Scripts (NASDAQ: ESRX), PT $7.00.
FBR analyst says, "1Q11 performance was in line with management’s expectations but below ours and puts considerably more pressure on the back half of the year. We have lowered our 2011 estimate to the lower end of the guided range. While there are ways the company could produce better results, we view much of that as predicated on an improvement in utilization. Considering the weaker-than-expected level of utilization in 1Q11, it could be a stretch to expect utilization to ramp again so quickly. Near-term upside could also be achieved through the announcement of a meaningful strategic acquisition. We continue to remain on the sidelines and look for more clarity in the back half of the year where a number of the company’s initiatives should generate greater volume growth and potentially more earnings power."
"We are lowering our 2011 pro forma EPS estimate by a nickel to $3.16. Our new EPS estimate accounts for the shortfall experienced in 1Q11 as well as more muted expectations for 2Q11. Management has guided to a more heavily back-end weighted year and our new estimate expects 56% of the year’s earnings to be recognized in the back half of 2011. Our 2012 EPS estimate of $3.87 remains unchanged."
For more ratings news on Express Scripts click here and for the rating history of Express Scripts click here.
Shares of Express Scripts closed at $54.15 yesterday, with a 52 week range of $41.55-$106.30.
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FBR analyst says, "1Q11 performance was in line with management’s expectations but below ours and puts considerably more pressure on the back half of the year. We have lowered our 2011 estimate to the lower end of the guided range. While there are ways the company could produce better results, we view much of that as predicated on an improvement in utilization. Considering the weaker-than-expected level of utilization in 1Q11, it could be a stretch to expect utilization to ramp again so quickly. Near-term upside could also be achieved through the announcement of a meaningful strategic acquisition. We continue to remain on the sidelines and look for more clarity in the back half of the year where a number of the company’s initiatives should generate greater volume growth and potentially more earnings power."
"We are lowering our 2011 pro forma EPS estimate by a nickel to $3.16. Our new EPS estimate accounts for the shortfall experienced in 1Q11 as well as more muted expectations for 2Q11. Management has guided to a more heavily back-end weighted year and our new estimate expects 56% of the year’s earnings to be recognized in the back half of 2011. Our 2012 EPS estimate of $3.87 remains unchanged."
For more ratings news on Express Scripts click here and for the rating history of Express Scripts click here.
Shares of Express Scripts closed at $54.15 yesterday, with a 52 week range of $41.55-$106.30.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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