Drugstore chain CVS (NYSE:CVS) put up solid second-quarter numbers today. Highlights included impressive gross margin expansion, tight inventory management, and 13% earnings growth.
CVS netted $199.8 million vs. $176.4 million a year earlier. Per share, it earned $0.49 compared to $0.43. Analysts were expecting $0.48.
Sales increased 7.6% to $6.44 billion. Same-store sales were up 5.5%. Easter falling later in the year contributed to CVS's comps growth this quarter. That same factor weighed comps down in the first quarter.
Gross margins for the company swelled to 25.35% from 24.72%. Generic drugs helped boost CVS's gross margin, as did the company's improved inventory management. CVS has been working hard to keep inventories lean and reduce shrinkage, and the company's efforts appear to be paying off.
On the balance sheet, CVS closed the quarter with $567 million in cash, 70% more than the same period last year. Inventory levels were a bit lower this quarter, year over year. Accounts receivables were up 8.4%, ahead of sales slightly.
For the full year, CVS is expecting earnings per share of $1.93-$1.98. Analysts were anticipating $1.92. Revenues for the year are predicted to rise 8%-10%.
