CVS Falls Short of Estimates, Raises Outlook

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By Trey Thoelcke Published
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This morning, CVS Caremark Corp. (NYSE: CVS) reported second-quarter earnings of $966 million, or $0.75 per share, and $30.7 billion in revenue. EPS were up from $0.60 in the same period a year ago, and revenue was 16.3% higher. The Thomson Reuters consensus estimates called for $0.79 per share and $30.9 billion revenue.

The Rhode Island-based pharmacy operator also raised its full-year EPS guidance to $3.32 to $3.38, versus the analysts’ consensus estimate of $3.32 per share.

Revenues in the Retail Pharmacy Segment increased 6.9% to $15.8 billion, with same-store sales 5.6% higher year over year. CVS benefited from competitor Walgreen Co. (NYSE: WAG) not being part of the Express Scripts Holding Co. (NASDAQ: ESRX) pharmacy provider network during the quarter. Walgreen will reenter that network in September.

CVS also said revenues in the Pharmacy Services Segment increased 28.2% to $18.4 billion, driven in part by new activity resulting from the acquisition of the Medicare prescription drug plan of Universal American Corp.

“We delivered results that were at or above our expectations in both the retail and PBM segments,” said Larry Merlo, president and CEO. “With our stable business and differentiated offerings, we remain very well positioned in the marketplace.”

Shares are up by 1.9% in premarket trading at $45.75, and the 52-week trading range is $31.30 to $48.69. Thomson Reuters had a consensus analyst price target of $50.95 before this news.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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