Free Research Report as CVS’ Revenues Grew 2.6% and Adjusted EPS Surged 26%

LONDON, UK / ACCESSWIRE / May 31, 2018 / If you want access to our free earnings report on CVS Health Corp. (NYSE: CVS) (“CVS”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CVS. The Company reported its first quarter fiscal 2018 operating and financial results on May 02, 2018. The drugstore chain and pharmacy benefit manager surpassed earnings expectations. Additionally, the Company provided an update on the Aetna Inc. acquisition as well as guidance for the upcoming quarter and fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, CVS Health most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended March 31, 2018, CVS’ net revenues increased 2.6% to approximately $45.69 billion, up from $44.51 billion in Q1 2017. The Company’s revenue numbers lagged analysts’ estimates of $45.77 billion.

During Q1 2018, CVS’ consolidated operating profit increased 8.5% to $1.95 billion on a y-o-y basis, driven by a decrease in store rationalization costs of $199 million, offset by a loss of $86 million on the divestiture of the Company’s RxCrossroads subsidiary, and an increase in acquisition-related transaction and integration costs of $28 million.

For Q1 2018, CVS posted a net income of $998 million, or $0.98 per diluted share, compared to $952 million, or $0.92 per diluted share, in Q1 2017. The increase was primarily due to the $153 million increase in operating profit, less a $221 million increase in interest expenses primarily due to the net interest expense on the financing associated with the proposed acquisition of Aetna.

CVS’ adjusted earnings jumped to $1.48 per diluted share in Q1 2018 compared to $1.17 per diluted share in Q1 2017. The Company’s earnings surpassed Wall Street’s estimates of $1.41 per share.

Segment Results

During Q1 2018, CVS’ Pharmacy Services segment’s revenues increased 3.2% to approximately $32.2 billion, primarily driven by a growth in pharmacy network and specialty claim volume, as well as brand inflation. During the reported quarter, Pharmacy network claims processed increased 6.0% to 399.5 million on a 30-day equivalent basis compared to 376.8 million in the prior year’s same period. On a 30-day equivalent basis, mail choice claims processed increased 8.9% to 69.3 million during Q1 2018 compared to 63.7 million in Q1 2017, attributed to the continued adoption of the Company’s Maintenance Choice® offerings.

For Q1 2018, CVS’ Retail/LTC segment’s revenues grew 5.6% to approximately $20.4 billion, primarily due to an increase in same-store prescription volumes of 8.5% on a 30-day equivalent basis, due to the continued adoption of the Company’s Patient Care Programs, partnerships with PBM’s and health plans, and its inclusion in a number of additional Medicare Part D networks in Q1 2018, as well as brand inflation.

During Q1 2018, CVS’ same-store sales increased 5.8% and pharmacy same-store sales increased 7.3% on a y-o-y basis. The increase in pharmacy same-store sales was principally driven by the increase in pharmacy same-store prescription volumes. The Company’s front store same-store sales increased 1.6% in the reported quarter, driven by a favorable impact of approximately 90 basis points as a result of the shift of sales associated with the Easter holiday to Q1 2018 from Q2 2017. The impact of seasonal cough and cold accounted for approximately 70 basis points of additional favorability in the reported quarter.

For Q1 2018, CVS’ generic dispensing rate increased approximately 65 basis points to 87.6% in the Company’s Pharmacy Services segment, and increased approximately 60 basis points to 88.1% in the Retail/LTC segment.

Aetna Transaction Progress

CVS’ acquisition of Aetna, announced in December 2017, was approved by shareholders of both Companies on March 13, 2018. The Company noted that the regulatory approval process is proceeding within a timeframe consistent with expectations. The transaction is still expected to close during H2 2018.

Outlook

For the full fiscal year 2018, CVS is forecasting a GAAP operating profit growth of down 0.25% to up 2.75%, and confirmed its previous adjusted consolidated operating profit growth guidance of down 1.5% to up 1.5%. The Company also expects to deliver GAAP diluted earnings per share (EPS) of $5.11 to $5.32 and adjusted EPS of $6.87 to $7.08 for FY18.

For the second quarter of the fiscal year 2018, CVS is projecting GAAP operating profit growth of 5.25% to 8.5%, and adjusted consolidated operating profit growth of flat to up 3.25%. Additionally, the Company expects to deliver GAAP diluted EPS in the band of $1.21 to $1.26 and adjusted EPS of $1.59 to $1.64.

Stock Performance Snapshot

May 30, 2018 – At Wednesday’s closing bell, CVS Health’s stock climbed 1.84%, ending the trading session at $65.99.

Volume traded for the day: 6.50 million shares.

After yesterday’s close, CVS Health’s market cap was at $67.05 billion.

Price to Earnings (P/E) ratio was at 13.08.

The stock has a dividend yield of 3.03%.

The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 1.4% at the end of the session.

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