CVS Health Beats On Q2 Earnings, Revenue Estimates

Ever bought medicines or cosmetics over the counter? Yes, then you may have walked into one of the 7,700 retail CVS/pharmacy stores of the largest pharmacy healthcare services provider in the U.S. – CVS Health Corporation (CVS – Analyst Report). This Rhode Island-based company's more than 900 walk-in medical clinics–CVS/MinuteClinic currently possess a customer satisfaction rate of 95%.

Currently, CVS Health has a Zacks Rank #3 (Hold) but that could improve following its strong second-quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate remained steady at $1.20 per share over the last 90 days. CVS Health's adjusted earnings per share of $1.22 exceeded the estimate by 1.7%.

Revenues: CVS Health posted revenues of $37.169 billion, closely beating the Zacks Consensus Estimate for revenues of $37.156 billion.

Key Stats: CVS Health's Pharmacy Services segment revenues increased 11.9% to $24.4 billion, while revenues from Retail Pharmacy segment improved 2.2% year over year to $17.2 billion. During the second quarter, CVS opened 25 new retail drugstores, and closed 5 retail drugstores and 1 branch for infusion and enteral services. Further, the company relocated 16 retail drugstores.

Major FactorsAccording to management, CVS Health posted better-than-expected second-quarter result. The company's operating profit in the retail exceeded its expectations while operating profit in the PBM was in line with the guidance. CVS Health has generated more than $2.1 billion in free cash flow in the first half of 2015, putting the company on its way to return more than $6 billion to shareholders through dividends and share repurchases in 2015.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.

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