Express Scripts Holding (ESRX) has reported 85.48 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1,434.70 million, or $2.34 a share in the quarter, compared with $773.50 million, or $1.13 a share for the same period last year. On an adjusted basis, earnings per share were at $1.88 for the quarter compared with $1.56 in the same period last year.

Revenue during the quarter dropped 5.01 percent to $24,863.30 million from $26,175.40 million in the previous year period. Gross margin for the quarter expanded 76 basis points over the previous year period to 9.40 percent. Total expenses were 94.07 percent of quarterly revenues, down from 95.36 percent for the same period last year. This has led to an improvement of 129 basis points in operating margin to 5.93 percent.

Operating income for the quarter was $1,474.70 million, compared with $1,213.80 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $2,054.20 million compared with $1,932 million in the prior year period. At the same time, adjusted EBITDA margin improved 88 basis points in the quarter to 8.26 percent from 7.38 percent in the last year period.

We delivered another year of successful performance, not only through financial results, but by providing innovative solutions to help our patients and clients drive healthier outcomes and lower drug trends," said Tim Wentworth, chief executive officer and president. "In a year when the focus on drug pricing has never been greater, Express Scripts has held the 2016 growth rate in drug unit costs to 2.5% and lowered the patients’ share of total drug costs per prescription. The fundamentals of our business remain strong as our clinical focus and unwavering alignment with clients enables us to lead the industry in developing innovative value-based solutions that our country needs."

For the first-quarter, On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.30 to $1.34.

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $6.82 to $7.02 on adjusted basis.

The company has spent $351.90 million cash to meet investing activities during the year as against cash outgo of $268.50 million in the last year.

The company has spent $4,677.80 million cash to carry out financing activities during the year as against cash outgo of $3,217 million in the last year period.

Cash and cash equivalents stood at $3,077.20 million as on Dec. 31, 2016, down 3.42 percent or $109.10 million from $3,186.30 million on Dec. 31, 2015.

Working capital remains negative
Working capital of Express Scripts Holding was negative $4,064.70 million on Dec. 31, 2016 compared with negative $5,095.80 million on Dec. 31, 2015. Current ratio was at 0.75 as on Dec. 31, 2016, up from 0.70 on Dec. 31, 2015.

Cash conversion cycle (CCC) was almost stable at 9 days for the quarter, when compared with the last year period. Days sales outstanding went up to 13 days for the quarter compared with 12 days for the same period last year.

Days inventory outstanding was almost stable at 4 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 8 days for the quarter from 7 for the same period last year.