NEW YORK (AP) — Pharmacy benefits manager Medco Health Solutions Inc. said Tuesday it posted record earnings in the third-quarter on a rise in revenue from the addition of new clients and higher prices for prescription drugs.

The company also raised its full-year guidance and indicated it expects earnings for 2011 to come in above current Wall Street estimates.

Medco said earnings rose 10.6 percent, to $371.5 million, or a record 85 cents per share, for the July-September period. That was up from $335.6 million, or 69 cents a share, a year ago.

Revenue rose 10 percent to $16.32 billion from $14.79 billion.

The company said it sold 154 million prescriptions in the third quarter, up 6.7 percent from the same period in 2009.

Excluding charges, the company said it earned 91 cents per share.

Analysts polled by Thomson Reuters expected net income of 88 cents per share on $16.13 billion in revenue.

Medco shares rose $4.19, or 8 percent, to $56.56 in midday trading Tuesday.

Looking ahead, the Franklin Lakes, N.J., company raised its full-year guidance to between $3.14 and $3.16 per share, or $3.38 to $3.40 per share, excluding charges.

That’s up from a prior range of $3.10 to $3.15 per share, or $3.34 to $3.39 per share excluding charges.

Analysts expect 2010 profit of $3.38 per share, excluding charges.

In a statement, Medco Chairman and Chief Executive Officer David B. Snow Jr., said he expects profits to continue to rise as more generic products come on the market.

“Looking forward, we expect that 2012 will reflect a very significant contribution from new generic introductions  in fact the highest of this decade and the highest in our history,” Snow said.

For 2011, the company expects profit of $3.53 to $3.66 per share, or $3.99 to $4.12 per share, excluding charges, while analysts expect $3.93 per share.

• AP Exchange