Ever bought medicines or cosmetics over the counter? Yes, then you may have walked into one of the 7,800 retail CVS/pharmacy stores of the largest pharmacy healthcare services provider in the U.S. – CVS Health Corporation (CVS). This Rhode Island-based company’s more than 900 walk-in medical clinics–CVS/MinuteClinic currently possess a customer satisfaction rate of 95%.
Currently, CVS Health has a Zacks Rank #2 (Buy) but that could improve following its strong first-quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: The Zacks Consensus Estimate remained steady at $1.08 per share over the last 30 days. CVS Health’s adjusted earnings per share was pegged at $1.14, 5.6% ahead of this estimate.
Revenues: CVS Health posted revenues of $36.332 billion, beating the Zacks Consensus Estimate for revenues of $35.920 billion.
Key Stats: CVS Health’s Pharmacy Services segment revenues increased 18.2% to $23.9 billion, while revenues from Retail Pharmacy segment improved 2.9% year over year to $17.0 billion. During the first quarter, CVS opened 38 new retail drugstores, and closed 10 existing ones. Further, the company relocated 12 retail drugstores.
Major Factors: Management remained pleased with the company’s solid first quarter result, which reflected that CVS Health is gaining shares in the marketplace and in turn is driving solid, sustainable growth. The company’s exit from the tobacco business positively impacted the company’s Retail Pharmacy business sales during the quarter. Moreover the company is already off to a strong 2016 selling season.
Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session. However, the price movement during the full trading session will show whether the results have been able to impress the market.
Check back later for our full write up on this CVS Health earnings report later!
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