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.