CVS Caremark Earnings: Here’s Why Shares are Up Now
CVS Caremark Corporation (NYSE:CVS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.21%.
CVS Caremark Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 19.75% to $0.97 in the quarter versus EPS of $0.81 in the year-earlier quarter.
Revenue: Rose 1.74% to $31.25 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: CVS Caremark Corporation reported adjusted EPS income of $0.97 per share. By that measure, the company beat the mean analyst estimate of $0.96. It beat the average revenue estimate of $31.14 billion.
Quoting Management: President and Chief Executive Officer Larry Merlo said, “Our second quarter results reflect very strong operating performance, with operating profit increasing 15% enterprise-wide, with 32% growth in the PBM and 9% growth in the retail business. As expected, new generic drug introductions continued to be a significant growth driver across the enterprise, resulting in healthy margin expansion and earnings growth. We achieved Adjusted EPS for the quarter at the high end of our guidance range despite a higher-than-anticipated share count.”
Key Stats (on next page)…
Revenue increased 1.58% from $30.76 billion in the previous quarter. EPS increased 16.87% from $0.83 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.98 to a profit $0.97. For the current year, the average estimate is a profit of $3.98, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)