Goldman Sachs Maintains Neutral on Express Scripts (ESRX)

Goldman Sachs is out with its report today on Express Scripts ESRX, maintaining Neutral. In a note to clients, Goldman Sachs writes, "ESRX reported 1Q adjusted EPS of $0.66 and a rare miss versus us and the Street at $0.70 and $0.69. The shortfall relative to our model was driven by a combination of adjusted scripts below our forecast on modestly lower gross margin and partially offset by a sequential decline in SG&A spend. Overall, 1Q shortfall will be the focus tomorrow and likely drive share weakness, which was evident in after-market trading. That said, as a partial offset we expect the call to highlight a solid, intact, earnings picture with (1) reaffirmed full-year operational guidance, including EPS, though more back-end weighted and now better understood, and (2) potentially greater support to 2012 following a separate announced debt offering which could be used (per the release) for more share repurchases. Nevertheless, no change to Neutral rating, and while 1Q may bring modest negative read-across to MHS, we see more appropriate expectations ahead of 1Q Thurs." Goldman Sachs maintains a $61 PT on ESRX. At the time of posting, shares of ESRX were trading pre-market at $52.67, down 4.88% from Monday's close.