FRANKLIN LAKES, N.J. -- Pharmacy benefits manager Medco Health Solutions Inc. said today that record mail-order volume and an influx of generic drugs on the market drove first-quarter results above Wall Street expectations.

Net income slipped to $270.2 million, or 50 cents per share, from $274.8 million, or 47 cents per share, a year ago, when a generic version of blood thinner Plavix was briefly on the market. But excluding amortization costs, earnings per share totaled 55 cents in the latest period, up from 52 cents last year.

Revenue grew 16 percent to $12.96 billion from $11.16 billion, as price inflation on brand-name drugs and higher volumes associated with new client wins offset higher generic dispensing rates. Generic drug sales contribute less to overall revenue but boost profit margins.

Analysts surveyed by Thomson Financial expected profit before one-time items of 53 cents per share on revenue of $12.26 billion.

The company said mail-order prescription volume increased 13.7 percent to 26.6 million, while retail prescription volume increased 6.4 percent to 127.2 million.

Medco Health Solutions Inc. reaffirmed its outlook for 2008 adjusted profit between $2.27 and $2.31 per share. Analysts expect full-year earnings per share of $2.30.