Earnings Preview: MedcoHealth Solutions

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 |  About: Medco Health Solutions, Inc. (MHS)
by: Theflyonthewall
MedcoHealth Solutions (NYSE:MHS) is expected to report Q4 earnings with a conference call scheduled Tuesday, February 19 at 8:30 a.m. ET.

Guidance

Analysts are looking for a profit of 41c on revenue of $11.47B. The consensus range is 39c to 47c for EPS, and revenue of $10.88B to $12.01B, according to First Call. As a prescription benefits manager, PBM, MedcoHealth profits when blockbuster drugs go generic. When Wyeth (WYE) announced the launch of a generic version of Protonix, MedcoHealth shares jumped.

Analyst Views

Morgan Stanley sees slowing earnings growth from retirees and believes UnitedHealth (NYSE:UNH) could take business in house. UBS downgraded the stock to Neutral from Buy citing a slowing generic pipeline and limited earnings upside. Banc of America reiterated its Buy rating saying the company is poised to report strong results for this quarter.