CVS Shares Explode Higher Despite Lackluster Earnings Report

Share This Article
August 2, 2016 11:27am NYSE:CVS

cvs-health-logoShares of CVS Health Corp (NYSE:CVS) flew higher on Tuesday, following a mixed earnings report that was unexpectedly well-received by investors.


For the second quarter, CVS posted an adjusted profit of $1.32 per share, beating estimates of $1.30. Revenue rose 17.6% from last year to $43.73 billion, but still missed Wall Street’s view for $44.28 billion.

Looking ahead, the Woonsocket, RI-based company forecast third quarter earnings to range from $1.55 to $1.58, which is in-line with analyst expectations. For the full year 2016, the company lifted its guidance to a range of $5.81 to 5.89 per share, up from a prior estimate of $5.73 to 5.88. The analyst consensus is for $5.82 per share for the year.

Other interesting tidbits from the report included:

  • Pharmacy Services Segment revs surged 20.7% to $29.5 billionm driven by higher claim volume and the Omnicare acquisition.
  • Retail/LTC Segment revs rose 16.0% to $20.0 billion, also helped by Omnicare.
  • Same store sales rose 2.1% in the period. Pharmacy same store sales rose 3.9%.
  • Front store same store sales fell 2.5%, hurt by an earlier Easter this year.

CVS shares rose $3.95 (+4.23%) to $97.44 in late morning trading on Tuesday. The stock is flat year-to-date, versus a 6.4% gain in the S&P 500. CVS is the largest drug store operator in the U.S. with a market cap of over $106 billion.

CVS-2016-08-02


9 "Must Own" Growth Stocks For 2019

Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular



Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories