CVS Health Tops Q1 Expectations

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CVS Health Corp
CVS
reported upbeat results for the first quarter on Friday. The Woonsocket, Rhode Island-based company posted a quarterly net profit of $1.22 billion, or $1.07 per share, versus a year-ago profit of $1.13 billion, or $0.95 per share. Excluding non-recurring items, adjusted earnings per share rose to $1.14 from $1.02. Its net revenue rose 11.1 percent year-over-year to $36.3 billion. However, analysts were expecting earnings of $1.08 per share on revenue of $35.93 billion. The average estimate among 26 Estimize users was for earnings of $1.09 per share and revenue of $36.05 billion. Revenue in the Pharmacy Services segment rose 18.2 percent to $23.9 billion, while revenue in the Retail Pharmacy segment gained 2.9 percent to $17.0 billion. Same store sales rose 1.2 percent year-over-year in the first quarter. Pharmacy same store sales gained 4.2 percent, while front store same store sales slipped 6.1 percent. Operating profit rose 5.3 percent to $2.1 billion. During the quarter, CVS opened 38 new retail drugstores and closed 10 retail drugstores. President and Chief Executive Officer Larry Merlo stated, "We delivered better-than-expected results this quarter, primarily driven by stronger-than-expected prescription volumes as well as favorable purchasing and rebate economics in the PBM." Mr. Merlo added, "We are already off to a solid start in the 2016 PBM selling season. Our integrated model allows us to provide differentiated products and services that generate savings for our clients while providing better health outcomes and convenience for patients. We remain very well positioned with our distinctive, channel-agnostic solutions, which are resonating strongly in the marketplace." For the full year 2015, CVS now projects adjusted earnings of $5.08 to $5.19 per share, versus its earlier forecast of $5.05 to $5.19 per share. CVS projects adjusted earnings of $1.17 to $1.20 per share for the second quarter, versus analysts' estimates of $1.25 per share. CVS shares fell 1.37 percent to close at $99.29 yesterday.
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Posted In: EarningsNewsGuidanceprofit
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