Oppenheimer Remains Sidelined on Express Scripts (ESRX) Following 3Q

November 1, 2016 10:00 AM EDT
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Price: $71.75 -0.97%

Rating Summary:
    11 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Oppenheimer reiterated a Perform rating on Express Scripts (NASDAQ: ESRX) following the company's 3Q. ESRX reported 3Q revenues of $25.4B vs. consensus of $25.5B. Adjusted EPS was $1.74 vs. consensus of $1.73 and $1.72-1.76 guidance. 4Q Adjusted EPS was guided to $1.84-1.90 vs. consensus' $1.85 estimate.

Analyst Mohan Naidu commented, "ESRX adjusted claims missed at 312M vs. 316M consensus, largely on faster Coventry roll-off, and penny EPS beat at $1.74. The company tweaked its 2016 guide, with the midpoints 2.5M lower on claims but $0.01 higher on Adj. EPS, largely on 4Q buyback, with SG&A pressure from 1/1 go-lives. ESRX’s 2017 selling season new sales meaningfully exceeding named losses, ex-Coventry and targeting 97-98% retention going forward, and 2017 guide due out Dec. 14th. While no update on ANTM case, RFP (for 2020+) expected out in early 2017. While we like the improvement in retention and recovery in selling season, we see ANTM as a continued overhang, and the ongoing rhetoric on drug pricing could impact margin profile. Remain Perform."

For an analyst ratings summary and ratings history on Express Scripts click here. For more ratings news on Express Scripts click here.

Shares of Express Scripts closed at $67.40 yesterday.

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