The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CVS Caremark met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Gross margins increased, operating margins grew, net margins dropped.
CVS Caremark logged revenue of $31.39 billion. The 21 analysts polled by S&P Capital IQ expected a top line of $31.14 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $28.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.97. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. GAAP EPS of $0.90 for Q4 were 11% higher than the prior-year quarter's $0.81 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.1%, 50 basis points better than the prior-year quarter. Operating margin was 7.3%, 40 basis points better than the prior-year quarter. Net margin was 3.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $30.36 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $125.05 billion. The average EPS estimate is $3.94.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,687 members out of 1,752 rating the stock outperform, and 65 members rating it underperform. Among 460 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 449 give CVS Caremark a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CVS Caremark is outperform, with an average price target of $55.41.
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