Express Scripts (ESRX) 4Q15 Results: Surprise Sales Dip, Soft Outlook

Executive Summary

• Express Scripts reported 4Q15 revenue of $26.2 billion, slightly below the consensus estimate of $26.5 billion and roughly flat compared to the same quarter a year ago.
• The company reported diluted EPS of $1.56, in line with the consensus estimate of $1.56 and up 12.2% year over year.
• The company narrowed its EPS guidance for FY16. The company now expects earnings in the range of $6.10–$6.28 versus previous guidance of $6.08–$6.28. The current consensus estimate is for EPS of $6.13. For 1Q16, Express Scripts expects earnings in the range of $1.18–$1.22, below the consensus of $1.28.