The 10-second takeaway
For the quarter ended June 30 (Q2), CVS Caremark met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins were steady, net margins were steady.
CVS Caremark recorded revenue of $30.71 billion. The 17 analysts polled by S&P Capital IQ predicted sales of $31.02 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $26.23 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 $0.81. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. GAAP EPS of $0.75 for Q2 were 27% higher than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.7%, 170 basis points worse than the prior-year quarter. Operating margin was 5.6%, about the same as the prior-year quarter. Net margin was 3.1%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $30.18 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $123.03 billion. The average EPS estimate is $3.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,664 members out of 1,730 rating the stock outperform, and 66 members rating it underperform. Among 406 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 394 give CVS Caremark a green thumbs-up, and 12 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 $50.58.
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