The 10-second takeaway
For the quarter ended March 31 (Q1), CVS Caremark beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
CVS Caremark reported revenue of $30.76 billion. The 20 analysts polled by S&P Capital IQ expected to see revenue of $30.35 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.83. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. Non-GAAP EPS of $0.83 for Q1 were 28% higher than the prior-year quarter's $0.65 per share. GAAP EPS of $0.77 for Q1 were 31% 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 18.1%, 150 basis points better than the prior-year quarter. Operating margin was 5.5%, 90 basis points better than the prior-year quarter. Net margin was 3.1%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $31.26 billion. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $125.29 billion. The average EPS estimate is $3.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,701 members out of 1,766 rating the stock outperform, and 65 members rating it underperform. Among 455 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 444 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 $58.17.
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