Medco Health Solutions Inc. (MHS) Profit Jumps 26 Percent
Medco Health Solutions Inc., the biggest U.S. prescription benefits manager, said Friday its second-quarter profit jumped 26 percent on increased dispensing of high-margin generic drugs and mail-order prescriptions.
The results handily beat Wall Street expectations; Medco raised its 2007 profit forecast and its shares initially rose nearly 3 percent.
Franklin Lakes-based Medco, which processes prescriptions for about 60 million Americans, said net income rose to $214.9 million, or 76 cents per share, from $170.9 million, or 56 cents per share, a year ago.
Excluding a 10-cent charge for the gradual writedown of contracts Medco received when it was spun off from drugmaker Merck & Co., second-quarter earnings were 86 cents per share.
Revenue rose 4.4 percent, to $11.05 billion from $10.59 billion a year earlier, on higher prescription volumes due to new clients and on drugmakers raising prices on some brand-name drugs.
Analysts surveyed by Thomson Financial anticipated profit of 78 cents per share on revenue of $11.27 billion.
The results handily beat Wall Street expectations; Medco raised its 2007 profit forecast and its shares initially rose nearly 3 percent.
Franklin Lakes-based Medco, which processes prescriptions for about 60 million Americans, said net income rose to $214.9 million, or 76 cents per share, from $170.9 million, or 56 cents per share, a year ago.
Excluding a 10-cent charge for the gradual writedown of contracts Medco received when it was spun off from drugmaker Merck & Co., second-quarter earnings were 86 cents per share.
Revenue rose 4.4 percent, to $11.05 billion from $10.59 billion a year earlier, on higher prescription volumes due to new clients and on drugmakers raising prices on some brand-name drugs.
Analysts surveyed by Thomson Financial anticipated profit of 78 cents per share on revenue of $11.27 billion.
Labels: Medco Health Solutions Inc., MHS
posted by Stock Administrator @ 2:05 PM
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