Will PBM Slowdown Hamper Express Scripts (ESRX) Q3 Earnings?
Zacks Investment Research | Oct 17, 2017 08:51AM ET
Express Scripts Holding Company (NASDAQ:ESRX) is scheduled to report third-quarter 2017 results on Oct 24, after market close. The results are expected to show a decline in revenues at the pharmacy benefit manager (PBM) segment — one of the major revenue components. While this could majorly affect its earnings, let us take a look at how things are shaping up before the release.
The Zacks Consensus Estimate for PBM revenues stands at $23,226 million, reflecting a decline of 3.8% sequentially and 4.8% from the year-ago quarter. This St. Louis, MO-based company is the largest PBM in North America. Although PBM is a highly competitive industry, a report by Market Research projects that the U.S. PBM market will see a CAGR of 7.2% between 2014 and 2019.
Taking this into account, Express Scripts has been consistently trying to expand its core PBM business. The company completed the acquisition of myMatrixx, a pharmacy benefit solution provider for the workers' compensation industry recently. Furthermore, the company anticipates compounded annual EBITDA growth rate between 2% to 4% through 2020 for the core PBM business.
The Zacks Consensus Estimate for net sales stands at $25,611 billion, up 0.8% on a year-over-year basis.
Express Scripts Holding Company Price and Consensus
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