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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.