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    CVS

CVS HEALTH (CVS)
Mes dernières consult.
Most popular
Report
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

CVS Health : profit beats as pharmacy margins rise

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/02/2017 | 06:06pm CET
People walk outside a CVS store in Pasadena

CVS Health Corp (>> CVS Health Corp) reported a bigger-than-expected quarterly profit as higher margins in its pharmacy business helped offset the loss of major contracts last year.

CVS Health Corp (>> CVS Health Corp) reported a bigger-than-expected quarterly profit as higher margins in its pharmacy business helped offset the loss of major contracts last year.

Same-store prescription volumes fell 460 basis points in the first quarter due to the loss of contracts to fill prescriptions for Tricare, a U.S. Department of Defense health care program, and for customers of pharmacy benefits manager Prime Therapeutics, to rival Walgreens Boots Alliance Inc (>> Walgreens Boots Alliance Inc).

However, higher generic drug dispensing rate and a cut back on promotions at the front-end of the store lifted gross margin in the pharmacy business by about 35 basis points to 29.4 percent.

Front-end same-store sales fell 4.9 percent in the first three months ended March 31. The company sells beauty products, snacks and over-the-counter drugs at the front-end of its nearly 9,700 stores.

Front-end same-store sales slipped for the fourth straight quarter and the company has been investing to turn around sales by improving the store layout and product assortment.

CVS reiterated its 2017 profit forecast and estimated second-quarter adjusted earnings largely below analysts' average estimate of $1.33 per share.

The company's shares were down 2 percent at $80.23 in morning trading on Tuesday. Through Monday's close, they had gained 5.4 percent since Walgreens reported a surprise drop in sales last month.

Revenue in CVS's bigger pharmacy services business rose 8.5 percent to $31.2 billion as claims increased across its network and on strong demand for its specialty pharmacy service.

The specialty pharmacy service provides expensive drugs to people with chronic conditions such as rheumatoid arthritis.

Net income attributable to CVS fell to $952 million, or 92 cents per share, in the first quarter, from $1.15 billion, or $1.04 per share, a year earlier.

Interest expenses declined 11 percent to $252 million, while the company also got $19 million in tax benefits from the adoption of new accounting guidance for share-based compensation.

Excluding items, the company earned $1.17 per share.

Revenue rose 3 percent to $44.51 billion.

Analysts on average had expected earnings of $1.10 per share on revenue of $44.20 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)

Stocks treated in this article : CVS Health Corp, Walgreens Boots Alliance Inc
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CVS HEALTH
12/14 CVS HEALTH : chief information officer resigns
12/14 CVS HEALTH : Foundation Announces Grant to Increase Access to Provider Education..
12/14 CVS HEALTH : Solera Health Expands Its Board of Directors with the Addition of H..
12/12 CVS HEALTH : 3 Reasons Why Florida Addiction Recovery Center CEO Is Wary Of $77 ..
12/11 CVS HEALTH : 3 Reasons Why Florida Addiction Recovery Center CEO Is Wary Of $77 ..
12/08 CVS expects U.S. Justice Department to handle review of Aetna deal
12/08 CVS HEALTH : A.M. Best Places Credit Ratings of SilverScript Insurance Company U..
12/08 CVS HEALTH : Greg's Pharmacy, Bluffton, will become a CVS Pharmacy
12/07 MYERS INDUSTRIES : Names Chris DuPaul as Group President, Distribution
12/07 CVS HEALTH : Meningitis B Vaccine Available to Students, Faculty and Staff at UM..
More news
News from SeekingAlpha
12/15 Just Turned 40? How To Reach A Goal Of $1.5 Million.
12/15 MY JOURNEY TO FINANCIAL INDEPENDENCE : 86-Stock November Portfolio Update - Buyi..
12/14 The Next 20 Dividend Achievers Absolutely Trounce The Market
12/14 WALGREENS BOOTS ALLIANCE : Trading At A Bargain
12/13 The Value Of Reliability And Why Omega Healthcare Is A Value Trap
Financials ($)
Sales 2017 184 B
EBIT 2017 9 955 M
Net income 2017 5 255 M
Debt 2017 24 517 M
Yield 2017 2,81%
P/E ratio 2017 14,11
P/E ratio 2018 12,39
EV / Sales 2017 0,52x
EV / Sales 2018 0,49x
Capitalization 71 720 M
Chart CVS HEALTH
Duration : Period :
CVS Health Technical Analysis Chart | CVS | US1266501006 | 4-Traders
Technical analysis trends CVS HEALTH
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 86,1 $
Spread / Average Target 22%
EPS Revisions
Managers
NameTitle
Larry J. Merlo President, CEO & Non-Independent Director
David Wyatt Dorman Chairman
Jonathan C. Roberts Chief Operating Officer & Executive Vice President
David M. Denton Chief Financial Officer & Executive Vice President
Troyen A. Brennan Chief Medical Officer & Executive Vice President
Sector and Competitors
1st jan.Capitalization (M$)
CVS HEALTH-9.24%71 720
WALGREENS BOOTS ALLIANCE-13.34%69 681
EXPRESS SCRIPTS HOLDING CO0.33%39 091
MCKESSON CORPORATION10.51%32 772
AMERISOURCEBERGEN CORP.13.16%19 477
CARDINAL HEALTH INC-15.84%19 023