Express Scripts Holding Company(NASDAQ:ESRX), late
Monday, said that the forecasts by analysts of its earnings for 2013 were too
aggressive and was doubtful whether it would meet those expectations.
The estimates made by the analysts were on account of
the better-than-expected results by the pharmacy benefits manager in the third
quarter.
The company said that the weak economic outlook as
well as the high unemployment in the United States was serious deterrents to
its own growth prospects.
The doubts expressed by the management sent the shares
of the company plunging down 14 percent. It also threw up questions about the
company's ability to integrate its $29 billion purchase of Medco Health
Solutions, from which it was supposed to get synergies and save on costs.
Express Scripts said third-quarter earnings excluding
special items were $1.02 per share, compared with 79 cents a year ago.
Analysts on average were expecting 99 cents a share.
Net income rose to $391.4 million from $324.7 million
the year before. Third-quarter revenue increased to $27 billion from $11.57
billion. Claims rose 116 percent to 398.6 million.
Express Scripts raised the lower end of its forecast
range for 2012 earnings by 5 cents and now projects full-year profit this year
of $3.65 to $3.75 a share.
Analysts had projected Express Scripts would earn
$4.49 a share in 2013, which the company held as too aggressive.
Shares of the company tumbled 11% in the opening session.
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