CVS Caremark Earnings: Here’s Why the Stock is Trading Mixed
CVS Caremark Corporation (NYSE:CVS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are mixed.
CVS Caremark Corporation Earnings Cheat Sheet
Results: Net income increased 6.2% to $1.13 billion ($1.14 per diluted share) in the quarter versus a net gain of $1.06 billion in the year-earlier quarter.
Revenue: Rose 10.85% to $31.39 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: CVS Caremark Corporation reported adjusted net income of $1.14 per share. By that measure, the company beat the mean analyst estimate of $1.1. It beat the average revenue estimate of $31.13 billion.
Quoting Management: President and Chief Executive Officer Larry Merlo, said, “I’m very pleased with our fourth quarter results. Both the PBM and retail segments turned in strong performances at the high end of our expectations. And we also realized below-the-line benefits in the quarter from a lower effective tax rate and fewer shares than we originally anticipated, resulting in EPS exceeding the high end of our guidance by approximately three cents per share.”
Key Stats (on next page…