Express Scripts beats expectations

Express Scripts Inc., of St. Louis County, beat analysts second-quarter profit expectations and raised expectations for the remainder of the year.

Express Scripts’ second-quarter revenue rose 4 percent to $4.6 billion from $4.4 billion the previous year. Profit for the quarter jumped 42 percent to $152.7 million from $107.8 million.

Analysts polled by Thomson Financial, on average, expected profit of 54 cents per share.

Express Scripts credited its business model of aligning clients’ savings with its own profits. For example, employers typically save the most when their employees choose generics. So Express Scripts says it makes those choices the most profitable for itself as well, giving the company more incentive to do better for its customers.

Express Scripts increased 2007 earnings guidance from a range of $2.15 to $2.21 a share to a range of $2.23 to $2.29 share. This guidance range excludes some non-recurring items including the costs of its unsuccessful bid to acquire Caremark Rx.

Express Scripts based the higher than expected 2007 profits on a delay in changes to an industry pricing structure and “strong underlying trends in the business.”

Express Scripts’ board also approved increasing the company’s share repurchase program by 8 million shares to 120 million shares. So far, Express Scripts has repurchased 100.7 million shares.