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CVS Health (CVS) Beats On Q4 Earnings & Revenues Estimates


Ever bought medicines or cosmetics over the counter? Yes, then you may have walked into one of the 9,652 retail CVS/pharmacy stores of the largest pharmacy healthcare services provider in the U.S.–CVS Health Corporation CVS. This Rhode Island-based company has more than 900 walk-in medical clinics–CVS/MinuteClinic and currently possesses a customer satisfaction rate of 95%.

Currently, CVS Health has a Zacks Rank #3 (Hold) but that could change following its fourth quarter 2017 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here). We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate remained steady at $1.89 per share over the last 60 days.CVS Health’s adjusted earnings per share of $1.92 outpaced this estimate by 1.6%. However, this figure decreased by 12.3% in the year ago quarter.

CVS Health Corporation Price and EPS Surprise

CVS Health Corporation Price and EPS Surprise | CVS Health Corporation Quote

Revenues: CVS Health posted revenues of $48.4 billion up 5.3% y/y, surpassed the Zacks Consensus Estimate for revenues of $47.52 billion.

Key Stats: For the fourth quarter CVS Health’s Pharmacy Services segment revenues increased 9.3% year over year to $34.2 billion, while revenues from Retail/LTC segment increased 0.3% year over year to $20.9 billion. During the fourth quarter, CVS Health opened 65 new retail locations and closed 13 retail locations. Further, the company relocated five retail locations. As of Dec 31, 2017, CVS health operated 9,803 retail locations, including pharmacies in Target stores, in 49 states, the District of Columbia, Puerto Rico and Brazil.

Major Factors: CVS Health witnessed year-over-year growth in Pharmacy Services Segment on the back of growth in pharmacy network and specialty pharmacy volume as well as brand inflation, partially offset by continued price compression and increased generic dispensing. Also, we are encouraged to note that the company has returned to growth in Retail/LTC segment in the reported quarter. The company has also updated its full-year 2018 guidance to reflect the effects of the U.S. tax reform.

Stock Price: Following the earnings release, share prices have not shown any movement in the pre-market trading session.

Check back later for our full write up on this CVS Health earnings report later!

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