On Thursday, Feb. 1, drugstore retailer CVS
- Fourth-quarter sales grew 24% to $12.1 billion. Same-store sales grew 8.7%, while acquisitions of Minute Clinic and 700 Sav-on and Osco Stores from Albertson's, now part of SUPERVALU
(NASDAQ:VALU) , accounted for most of the remaining growth. - Total diluted earnings grew 2.1% for the quarter. Management estimated that Sav-on and Osco purchase costs decreased earnings by $0.05 per share.
- CVS and pharmacy benefit manager (PBM) firm Express Scripts
(NASDAQ:ESRX) are in a protracted battle to acquire rival PBM Caremark Rx(NYSE:CMX) . If CVS wins, 2007 will be an integration year. - In a separate press release, CVS detailed that January sales grew 24.2% to $3.7 billion, while same-store sales advanced 8.6%
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$12,066 |
$9,732 |
24.0% |
|
Net Profit |
$414 |
$403 |
2.7% |
|
EPS |
$0.49 |
$0.48 |
2.1% |
|
Diluted Shares |
855 |
843 |
1.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
27.9% |
27.8% |
0.1 |
|
Operating Margin |
6.2% |
6.2% |
0.0 |
|
Net Margin |
3.4% |
4.1% |
(0.7) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$531 |
$513 |
3.4% |
|
Accounts Rec. |
$2,377 |
$1,840 |
29.2% |
|
Inventory |
$7,109 |
$5,720 |
24.3% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,864 |
$2,468 |
16.0% |
|
Long-Term Debt |
$2,870 |
$1,594 |
80.1% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,742 |
$1,612 |
8.1% |
|
Capital Expenditures** |
$1,174 |
$956 |
22.8% |
|
Free Cash Flow |
$568 |
$656 |
(13.4%) |
**Net of sales and leaseback transactions, excluding that of acquired assets.
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Comparable companies:
-
Walgreen
(NYSE:WAG) -
Rite Aid
(NYSE:RAD) -
Long Drug Stores
(NYSE:LDG)
Related Foolishness:
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 check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann is long shares of Walgreen but has no financial interest in any other company mentioned.Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
