Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  CVS Health Corp    CVS

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

CVS Caremark 4th-Quarter Profit Up 2.6% on Higher Sales

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/06/2013 | 02:59pm CET

--Debt refinancing costs weigh on bottom line, but sales broadly higher

--PBM, retail sales each rise, helping CVS report better-than-expected results

--Same-store sales growth exceeds monthly data posted by Walgreen, Rite Aid

(Updates with CEO interview comments, additional background and the latest stock quote, beginning in the first paragraph.)

 
   By John Kell 
 

CVS Caremark Corp.'s (>> CVS Caremark Corporation) fourth-quarter earnings rose 2.6% as debt refinancing costs weighed on the bottom line, somewhat masking a strong performance for the company's pharmacy-benefits-management business and higher retail sales.

The drugstore retailer and PBM has now reported better-than-expected adjusted earnings for four consecutive quarters. Results in the fourth quarter were led by the PBM business, which saw revenue rise 17% to $18.6 billion, aided by new clients added to the network during the 2012 PBM selling season, higher drug costs and growth in the Medicare Part D program.

On the retail side, the top line jumped 5.1% to $16.3 billion as same-store sales grew 4%, growth that exceeds the monthly sales data posted by rivals Walgreen Co. (>> Walgreen Company) and Rite Aid Corp. (>> Rite Aid Corporation) in late 2012. Prescription volume growth was healthy, aided by client wins after Walgreen's contract dispute last year with fellow PBM Express Scripts Holding Co. (>> Express Scripts Holding Co) and stronger demand for flu-related prescriptions.

But CVS said pharmacy same-store sales were stung by higher usage of low-priced generics, which hurts the top line for drug store chains, though those products have a mixed benefit as they command higher margins.

An active flu season has helped drugstore chains somewhat mitigate the top-line dent caused by higher generic penetration, as consumers seek out vaccinations, order prescriptions and buy over-the-counter cough-and-cold medications. CVS Chief Executive Larry Merlo told Dow Jones Newswires that the company saw a "significant uptick" in flu activity by mid-December and strong demand through most of January.

Mr. Merlo said over the past two weeks, CVS has seen the severity of flu cases moderate. Still, the company has administered about 4.8 million flu shots so far this season, above last year's level.

Overall, CVS reported a profit of $1.13 billion, or 90 cents a share, up from $1.1 billion, or 81 cents a share, a year earlier. Excluding debt-related costs and other items, adjusted earnings from continuing operations were $1.14 in the latest quarter. Revenue increased 11% to $31.39 billion.

Analysts polled by Thomson Reuters most recently projected earnings of $1.10 on revenue of $31.13 billion.

Gross margin expanded to 20.1% from 19.6%.

For the year, CVS now sees adjusted earnings from continuing operations of $3.86 to $4, a view that was lifted by two cents to reflect the debt refinancing.

CVS will face some lofty comparisons in 2013, due to strong demand for generics, particularly in the first half of the year. And after Walgreen inked a contract agreement with Express Scripts starting in September, the company has had some success winning back some customers it lost to competitors during the months-long spat, resulting in some lost business for CVS.

Shares were up 1.5% to $52.50 in premarket trading.

--Tess Stynes contributed to this article

Write to John Kell at john.kell@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CVS HEALTH CORP
01/14 CVS HEALTH : Canada Pension Plan Investment Board Has $249,866,000 Position in C..
01/14 CVS HEALTH : targets EpiPen with cheaper, generic version
01/13 CVS HEALTH : unveils generic competitor to EpiPen for one-sixth the price
01/13 CVS HEALTH : More Mylan misery
01/13 CVS HEALTH : Vende CVS versión genérica de Epipen a un sexto de su precio
01/12 CVS HEALTH : generic competitor to EpiPen, sold at a 6th the price
01/12 CVS HEALTH : puts out generic competitor to EpiPen at a 6th the price
01/12 CVS HEALTH : Flu Shots Available at CVS Pharmacy Locations in Washington
01/12 CVS HEALTH : Supporting Those Who Care for Our Aging Population
01/09 CVS HEALTH : Carjacking victim, shot nine times, suing CVS
More news
Sector news : Drug Retailers - NEC
01:47aDJMCKESSON : to Pay $150 Million for Failing to Report 'Suspicious' Drug Orders
01/11DJWalgreens to Offer FedEx Dropoff and Pickup at Walgreens Locations Nationwide
01/05 U.S. loses bid to overturn AmEx antitrust decision
01/05DJWALGREENS BOOTS CEO : No Plan B for Rite Aid Merger--Update
01/05DJWalgreens Boots Profit Slips--Update
More sector news : Drug Retailers - NEC
News from SeekingAlpha
01/17 DGI FOR THE DIY : 2016 Portfolio Review
01/17 Impax Laboratories Stock To Rise On New Catalyst
01/16 Portfolio Update - CVS Health Corp. Purchased
01/16 CVS HEALTH : Strong Yield With A Catalyst
01/16 9 Dividend Companies With Lower Share Prices
Advertisement
Financials ($)
Sales 2016 178 057 M
EBIT 2016 10 773 M
Net income 2016 5 672 M
Debt 2016 24 647 M
Yield 2016 2,00%
P/E ratio 2016 16,09
P/E ratio 2017 15,30
EV / Sales 2016 0,63x
EV / Sales 2017 0,60x
Capitalization 87 427 M
More Financials
Chart CVS HEALTH CORP
Duration : Period :
CVS Health Corp Technical Analysis Chart | CVS | US1266501006 | 4-Traders
Full-screen chart
Technical analysis trends CVS HEALTH CORP
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 88,0 $
Spread / Average Target 7,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Larry J. Merlo President, CEO & Non-Independent Director
David Wyatt Dorman Non-Executive Chairman
David M. Denton Chief Financial Officer & Executive Vice President
Troyen A. Brennan Chief Medical Officer & Executive Vice President
Stephen J. Gold Chief Information Officer & Executive Vice Preside
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CVS HEALTH CORP3.89%87 427
WALGREENS BOOTS ALLIAN..1.28%90 476
EXPRESS SCRIPTS HOLDIN..4.38%44 273
MCKESSON CORPORATION4.79%33 275
CARDINAL HEALTH INC4.21%24 005
AMERISOURCEBERGEN CORP..8.22%18 625
More Results