CVS Caremark Earnings: Here’s Why the Stock is 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 0.55%.

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CVS Caremark Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.69% to $0.83 in the quarter versus EPS of $0.65 in the year-earlier quarter.

Revenue: Decreased 0.11% to $30.76 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CVS Caremark Corporation reported adjusted EPS income of $0.83 per share. By that measure, the company beat the mean analyst estimate of $0.79. It beat the average revenue estimate of $30.36 billion.

Quoting Management: President and Chief Executive Officer Larry Merlo, said, “I’m very pleased with our strong first quarter results. As expected, the influx of new generic drugs was a key driver across the enterprise, resulting in solid gross margin expansion as well as significant growth in operating profit and earnings. In fact, operating profit grew well beyond our expectations across the enterprise, and we delivered EPS that was three cents above the high end of our guidance. This out-performance was driven by stronger-than-expected prescription volumes due in large part to the strong flu season, strong specialty growth, and favorable purchasing and rebate economics.”

Key Stats (on next page)…

Revenue decreased 2.01% from $31.39 billion in the previous quarter. EPS decreased 27.19% from $1.14 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.94 and has not changed. For the current year, the average estimate has moved up from a profit of $3.94 to a profit of $3.97 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]