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 Factors: According to management, CVS Health posted better-than-expected second-quarter result. The company's operating profit in the retail business 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.