SXC Health Solutions Corp. (SXCI) reports its second-quarter results Thursday and a guidance increase could be in the cards.

"They should be able to guide up for the full year because they've announced a couple of contracts that weren't included in previous guidance," said Paradigm Capital's Gabriel Leung.

SXC, of Lisle, Ill., is a pharmacy-benefits-management provider. The company recently signed agreements to provide PBM services to the Ohio Bureau of Workers' Compensation and to the Presbyterian Health Plan.

SXC has already raised its 2009 guidance once. In May, the company said it sees non-GAAP earnings of $1.13 -$1.21 a share on revenue of $1.25-$1.35 billion. Its previous estimates were for net of 99 cents to $1.08 on revenue of $1.2-$1.3 billion.

Leung has built a guidance increase into his forecast and is the highest on the Street with a non-GAAP-earnings estimate of $1.28 a share on revenue of $1.4 billion. The mean 2009 analyst estimate is for $1.14 on revenue of $1.295 billion, according to FactSet.

If SXC hikes its guidance Thursday, it would be following the lead of its peers. Late Wednesday, Catalyst Health Solutions (CHSI) raised its share-earnings guidance to $1.45-$1.50 from $1.35-$1.45. The company's stock is up 4% to $26.90 on Nasdaq Wednesday. On July 29, Medco Health Solutions Inc. (MHS) and Express Scripts Inc. (ESRX) both raised their 2009 earnings guidance. Medco's stock climbed 4% that day on Nasdaq, while Express Scripts' stock rose marginally.

SXC's stock was one of the best performers on the Toronto Stock Exchange last year, rising 56% to C$22.74. The stock has continued its ascendance in 2009 and is up about 40% year to date, though it is down slightly Wednesday.

SXC trades at 10 times enterprise value to EBITDA based on 2010 estimates, Leung said. That's a slight premium to its peer group, which trades at an average of 9 times EV/EBITDA, he said.

Leung said he believes SXC's stock is building in a good quarter and investors will be awaiting the company's commentary on deal flow before deciding whether to take the stock higher. If the company forecasts an acceleration in deal flow, or its guidance "blows away" the Street, analysts will raise estimates, making the stock more attractive, he said.

Leung doesn't own SXC shares and there are no banking conflicts between Paradigm and SXC.

   Company Web Site: http://www.sxc.com 
 
   -Stuart Weinberg, Dow Jones Newswires; 416-306-2026; 
   stuart.weinberg@dowjones.com