CVS Sees Sales Rise: Fool by Numbers

On Nov. 1, CVS (NYSE: CVS  ) released third-quarter earnings for the period ended Sept. 30, 2006.

  • CVS experienced an increase in same-store sales in both the front and back parts of its stores. Same-store merchandise sales increased 6.4%, and same-store pharmacy sales rose 10.2%.
  • Free cash flow, though negative, improved because of higher cash flow from operations and flat capital expenditures.
  • Long-term debt increased by a whopping 101.5% to $3.28 billion as the company purchased 701 Sav-On and Osco stores.
  • The stock has a three-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$11,234

$11,210

$8,970

25.0%

Net Profit

--

$281

$249

12.6%

EPS

$0.32

$0.33

$0.30

10.0%

Diluted Shares

--

855

845

1.2%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

27.51%

26.77%

0.74

Operating Margin

4.79%

4.89%

(0.10)

Net Margin

2.50%

2.78%

(0.28)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$395

$368

7.2%

Accounts Rec.

$2,197

$1,783

23.2%

Inventory

$7,015

$5,697

23.1%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$2,817

$2,325

21.2%

Long-Term Debt

$3,280

$1,628

101.5%

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$993

$852

16.6%

Capital Expenditures

$1,116

$1,140

(2.1%)

Free Cash Flow

($123)

($289)

N/A



Find out why Fools always follow the money.

Related Companies:

Related Foolishness:

  • Walgreen (NYSE: WAG  )
  • MedcoHealth Solutions (NYSE: MHS  )
  • Rite Aid (NYSE: RAD  )

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 516993, ~/Articles/ArticleHandler.aspx, 7/28/2014 7:36:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement