CVS Health Corp. To Post First Tobacco-Free Quarter On Tuesday

Before the bell Tuesday, February 10, CVS Health Corp CVS is set to post its first full quarter of results after kicking retail sales of tobacco.

The Woonsocket, Rhode Island-based company went cold turkey on retail tobacco sales in early September 2014 in hopes that the move would prove an advantage for its pharmacy benefits management business and efforts to expand a string of walk-in medical care outlets.

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Last Quarter

But the company warned that about $2 billion in annual retail sales would go up in smoke.

In November, the company said "front" same-store sales – which exclude its retail pharmacies – fell 4.5 percent in the period that ended September, 30 2014.

Third-quarter earnings beat expectations, but had the company continued to sell tobacco, front same-store sales would have grown 0.3 percent in the period, the company estimated.

Forecast For Q4

CVS has forecasted adjusted fourth-quarter earnings of $1.18 to $1.21 a share; the current Wall Street consensus calls for $1.20 a share, on revenue of $36.06 billion.

The company's shares are up nearly 13 percent in the past three months and changed hands Monday, February 9 at $99.54, down $1.07.

Current Ratings

Twenty-four analysts maintain Buy ratings and four maintain Hold ratings on CVS, according to FactSet.