NEW YORK (AP) - Pharmacy benefits manager Medco Health Solutions Inc. said Tuesday its third-quarter net income rose 10.6 percent on higher revenue because of new clients and higher prices for prescription drugs.
The results beat analysts' estimates. The company raised its full-year guidance and indicated it expects earnings for 2011 to come in above current Wall Street estimates.
The company reported net income of $371.5 million, or 85 cents per share, for the July-September period, up from $335.6 million, or 69 cents per share, a year ago.
Revenue rose 10 percent to $16.32 billion from $14.79 billion.
Excluding charges, the company said it earned 91 cents per share. Analysts polled by Thomson Reuters expected net income of 88 cents per share on $16.13 billion in revenue.
Looking ahead, the Franklin Lakes, N.J., company raised its full-year guidance to between $3.14 and $3.16 per share, or $3.38 to $3.40 per share, excluding charges. That's up from a prior range of $3.10 to $3.15 per share, or $3.34 to $3.39 per share excluding charges.
Analysts expect 2010 profit of $3.38 per share, excluding charges.
For 2011, the company expects profit of $3.53 to $3.66 per share, or $3.99 to $4.12 per share, excluding charges, while analysts expect $3.93 per share.