CVS Finishes Off The Q2 Pharmacy Earnings Season

CVS Health Corp

announced better than expected earnings for the second quarter. However, its revenue failed to meet the predictions sending the stock down marginally in the pre-market tradition. The company also boosted its full year adjusted EPS outlook and saved further erosion of the share price. The pharmacy firm reported GAAP earnings of $0.86, down from $1.12 a share reflecting loss of early extinguishment of debt and acquisition-connected merger costs. However, its adjusted EPS grew 8.3 percent on a YOY basis to $1.32 and came in above the Street analysts' estimations of $1.30 a share. CVS's net revenues also advanced 17.6 percent to $43.7 billion, which fell short of the Street analysts' predictions of $44.28 billion. Its President and CEO, Larry Merlo, commented, "Operating profit in the Retail/LTC Segment was in line with expectations while operating profit in the Pharmacy Services Segment exceeded expectations." Going forward, the company lifted its adjusted EPS forecast to $5.81 - $5.89 for the full year from $5.73 - $5.88 projected by it earlier. Street is looking for an EPS of $5.82. For the third quarter, the company expects adjusted EPS of $1.55 - $1.58 suggesting that the mid-point is higher than the Street analysts' estimation of $1.55 a share. In the pre-market trading on Tuesday, shares of the company traded down by $0.49 or 0.52 percent at $93.00.