Market Overview

CVS Health's Earnings Outlook

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CVS Health (NYSE: CVS) will be releasing its next round of earnings this Friday, November 06. For all of the relevant information, here is your guide for Friday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on CVS Health management projections, analysts predict EPS of $1.33 on revenue of $66.58 billion. CVS Health earnings in the same period a year ago was $1.84 per share. Quarterly sales came in at $64.81 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 27.72%. Sales would be up 2.73% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.92 1.63 1.68 1.77
EPS Actual 2.64 1.91 1.73 1.84
Revenue Estimate 64.18 B 64.06 B 63.97 B 63.00 B
Revenue Actual 65.34 B 66.75 B 66.89 B 64.81 B

Stock Performance

Over the last 52-week period, shares are down 14.93%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CVS Health is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings