8/7 ADVP ($62-$72)P/E 71 tops analyst estimates (toppy here ?)
chart:
siliconinvestor.com
By Lisa Sanders, CBS.MarketWatch.com
Last Update: 8:08 PM ET Aug. 7, 2001
IRVING, Texas (CBS.MW) -- AdvancePCS, the nation's largest pharmacy benefits manager, reported a fiscal first-quarter profit Tuesday ahead of analyst expectations, reflecting the benefits of its acquisition of PCS last year.
The company out of Irving, Texas posted income of $25.2 million, or 55 cents a share, vs. $5.9 million, or 22 cents a share, earned a year ago. Exclusive of charges, AdvancePCS earned $25.7 million, or 56 cents a share. Analysts polled by Thomson Financial/First Call, whose estimates typically exclude one-time items, expected AdvancePCS (ADVP: news, chart, profile) to earn an average of 53 cents a share in the most recent quarter.
On July 26, the company upped its per-share estimates, reflecting recent accounting rule changes related to amortization of goodwill.
Meanwhile, revenue in the quarter climbed to $3.1 billion. A year ago and prior to the PCS merger, revenue rang in at $553.2 million. It was the 57th quarter in a row for record revenue and the 28th consecutive quarter for record earnings.
"The results for the quarter ended June 30 have been much anticipated by the investor community, as this quarter is the first period with expectations for meaningful synergies from the PCS acquisition," David Halbert, chairman and chief executive, said in a statement.
The PCS merger closed in October of 2000, catapulting the former Advance Paradigm past Merck-Medco to No. 1 in the ranks of the largest PBMs in the nation.
Shares of AdvancePCS, which provides services to around 75 million people, closed at $59.82, down 67 cents, ahead of the announcement.
Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com.
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