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CVS Health (CVS) Q3: Tops Earnings, Misses on Revenue

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Ever bought medicines or cosmetics over the counter? Yes, then you may have walked into one of the 9,652 retail CVS/pharmacy stores of the largest pharmacy healthcare services provider in the U.S. – CVS Health Corporation (CVS - Free Report) . This Rhode Island-based company’s more than 900 walk-in medical clinics–CVS/MinuteClinic currently possess a customer satisfaction rate of 95%.

Currently, CVS Health has a Zacks Rank #3 (Hold) but that could change following its third quarter 2016 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here). We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate remained steady at $1.57 per share over the last 60 days.CVS Health’s adjusted earnings per share of $1.64 beat this estimate by 4.4%.

CVS HEALTH CORP Price and EPS Surprise

CVS HEALTH CORP Price and EPS Surprise | CVS HEALTH CORP Quote

Revenues: CVS Health posted revenues of $44.6 billion, missing the Zacks Consensus Estimate for revenues of $45.3 billion.

Key Stats: CVS Health’s Pharmacy Services segment revenues increased 19.2% to $30.4 billion, while revenues from Retail/LTC segment improved 12.5% year over year to $20.1 billion.During the third quarter, CVS Health opened 48 new retail stores and closed 6 retail stores. Further, the company relocated 11 retail drugstores.

Major Factors: CVS Health ended third quarter of 2016 on a mixed note, with its bottom-line exceeding the Zacks Consensus Estimate, while the top-line missing the same.Moreover, management narrowed the company’s 2016 adjusted EPS guidance, which disappoints us. For the third quarter, the generic dispensing rate increased 160 basis points to 85.4% in the Pharmacy Services Segment and 100 basis points to 85.8% in the Retail/LTC Segment.

Stock Price: Following the earnings release, share prices dropped 12.4% in the pre-market trading session.

Check back later for our full write up on this CVS Health earnings report later!

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