CVS Caremark Corp Earnings: Profit Rises for Second Straight Quarter

S&P 500 (NYSE:SPY) component CVS Caremark Corporation (NYSE:CVS) reported its results for the fourth quarter. CVS Caremark provides prescriptions and related health care services and products.

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CVS Caremark Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the drug store rose to $1.06 billion (81 cents per share) vs. $1.02 billion (75 cents per share) in the same quarter a year earlier. This marks a rise of 4% from the year earlier quarter.

Revenue: Rose 15.2% to $28.32 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CVS Caremark Corporation reported adjusted net income of 89 cents per share. By that measure, the company fell in line with the mean estimate of 89 cents per share. Analysts were expecting revenue of $28.09 billion.

Quoting Management: President and Chief Executive Officer, Larry Merlo, said, “2011 was a year of great accomplishment for CVS Caremark. We executed successfully on a number of key initiatives across the Company and reported solid financial results, delivering on our promises. Our retail business continued to post strong top- and bottom-line results, and our PBM enjoyed strong revenue growth, another very successful selling season, and great progress on several important initiatives. These include the development of a number of unique, new integrated offerings as well as the streamlining initiative, which is expected to produce cumulative savings from 2011 through 2015 of more than $1 billion. We generated $4.6 billion in free cash for the year, exceeding our goal, and returned more than $3.5 billion to our shareholders in the form of dividends and share repurchases.”

Key Stats:

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the third quarter, it topped the mark by 3 cents, and in the second quarter, it was ahead by one cent.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 63 cents a share to 60 cents over the last ninety days. The average estimate hasn’t changed from $2.80 per share for the fiscal year.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com