SXC Health Solutions 4Q net income jumps

LISLE, Ill. (AP) — SXC Health Solutions Corp. said Thursday that its net income soared 61 percent in the fourth quarter as both pharmacy benefit management and health care information technology revenue improved.

The Lisle, Ill., company also provided 2012 earnings and revenue outlooks above Wall Street's expectations.

Shares of SXC jumped $4.20, or 6.6 percent, to $67.73 in midday trading. Earlier in the session, the stock hit a new 52-week high of $68.74.

In the fourth quarter, SXC earned $26.7 million, or 42 cents per share. That's up from $16.6 million, or 26 cents per share, a year earlier.

Taking out amortization of intangible assets and other items, earnings were 48 cents per share, matching the average analyst estimate, according to a survey by FactSet.

Revenue for the three months ended Dec. 31 more than doubled to $1.38 billion from $526.9 million.

Wall Street forecast $1.27 billion in revenue.

Prescription benefit management revenue rose on acquisitions, higher prescription claim volumes due to new customers and converting customers from health care information technology to prescription benefit management contracts.

Health care information technology revenue climbed on higher transaction processing revenue and an increase in professional services work.

For the year, SXC earned $91.8 million, or $1.46 per share. That compares with earnings of $64.7 million, or $1.03 per share, in the previous year. Adjusted earnings were $1.63 per share.

Annual revenue more than doubled to $4.98 billion from $1.95 billion.

Looking ahead, SXC expects 2012 adjusted earnings of $2.37 to $2.45 per share on revenue of $6.8 billion to $6.9 billion.

Analysts forecast earnings of $2.31 per share on revenue of $6.51 billion.

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