CVS Caremark Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CVS Caremark Corp (NYSE:CVS) will unveil its latest earnings on Thursday, November 3, 2011. CVS Caremark provides prescriptions and related health care services and products.

CVS Caremark Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 67 cents per share, a rise of 3.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 69 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 67 cents during the last month. Analysts are projecting profit to rise by 3.3% versus last year to $2.78.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of 65 cents a share versus the estimate of profit of 64 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $26.77 billion in revenue this quarter, a rise of 12.1% from the year ago quarter. Analysts are forecasting total revenue of $107.32 billion for the year, a rise of 11.3% from last year’s revenue of $96.41 billion.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the second quarter, profit fell 0.6% to $816 million (60 cents a share) from $821 million (60 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 10.9% to $26.63 billion from $24.01 billion.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 7.8% over the past four quarters. The quarter hit the hardest was the third quarter of the last fiscal year, that saw a 20.8% drop.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 8.9%.

Competitors to Watch: Walgreen Company (NYSE:WAG), Rite Aid Corporation (NYSE:RAD), PharMerica Corporation (NYSE:PMC), Medco Health Solutions Inc. (NYSE:MHS), drugstore.com, inc. (NASDAQ:DSCM), PetMed Express, Inc. (NASDAQ:PETS), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Graymark Healthcare Inc (NASDAQ:GRMH), BioScrip Inc. (NASDAQ:BIOS).

Stock Price Performance: During September 30, 2011 to October 28, 2011, the stock price had risen $3.37 (10.1%) from $33.47 to $36.84. The stock price saw one of its best stretches over the last year between November 30, 2010 and December 14, 2010 when shares rose for 11-straight days, rising 9.9% (+$3.04) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 4.7% (-$1.78) over that span. Shares are up $2.55 (+7.4%) year to date.

(Source: Xignite Financials)

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