Express Scripts shares sink on profit warning

  • Updated: November 6, 2012 - 8:54 PM
Express Scripts shares sink on profit warning

Shares of Express Scripts Holding Co. plunged the most in a decade after the largest U.S. pharmacy benefits manager said analysts' estimates for profit growth in 2013 are "overly aggressive." Express Scripts shares tumbled 12 percent, the most since May 2002, to close at $55.15 after the company said Monday that a "weak business climate and the unemployment outlook" may lead to a loss of members, depressed drug utilization and "increased client demands." Analysts had expected the company to have profit of $4.50 a share next year, according to the average of 22 estimates.

Amazon Prime now offering monthly rates

Amazon.com Inc. started a monthly subscription option for Amazon Prime, a service for shipping and streaming video, a move designed to entice holiday shoppers and step up competition with Netflix Inc. Prime subscriptions, which have cost $79 a year, can now be bought for $7.99 month, according to pricing information on the website of the Seattle-based company. Free two-day shipping may help Amazon, the world's largest online retailer, encourage consumers to make more holiday gift purchases on its website.

Wells Fargo raises estimate of refinance costs

Wells Fargo & Co., the home lender that agreed to refinance mortgages after a probe of the industry's practices, may forgo as much as $2 billion in interest, $300 million more than previously estimated. The lost interest may range from $1.8 billion to $2 billion in future years, or $181 million to $201 million annually, San Francisco-based Wells Fargo said in its quarterly regulatory filing. As many as 36,000 borrowers may get their interest rates lowered, according to the filing.

Nissan cuts forecast after sales in China drop

Nissan Motor Co., the top Japanese seller of vehicles in China, cut its full-year net income forecast 20 percent after consumer backlash stemming from a territorial dispute sent sales lower in its largest market. Net income may total 320 billion yen ($4 billion) for the year ended March 31, compared with its earlier estimate of 400 billion yen, the Yokohama, Japan-based company said. The carmaker cut its operating income forecast to 575 billion yen from 700 billion yen, and lowered its global vehicle sales target by 5 percent to 5.08 million units.

Factory orders down 3.3 percent in Germany

German factory orders fell the most in a year in September as Europe's sovereign debt crisis and slowing economic growth prompted companies to reduce investment. Orders, adjusted for seasonal swings and inflation, slumped 3.3 percent from August, when they dropped a revised 0.8 percent, the Economy Ministry in Berlin said. That's the second straight drop and the biggest since September 2011. Economists forecast a 0.4 percent decline. From a year earlier, orders sank 4.7 percent when adjusted for work days.

Inflation eased last month in Russia

Russia's price growth unexpectedly eased in October, slowing for the first time in six months and giving policymakers room to sidestep interest-rate increases. The inflation rate fell to 6.5 percent in October from a year earlier, compared with 6.6 percent in September, the Federal Statistics Service in Moscow said. Prices grew 0.5 percent in the month. Economists projected a 6.7 percent annual rate and a 0.6 percent advance in the month, according to the median estimates of two Bloomberg surveys.

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