Golf Clap for CVS Caremark
CVS Caremark (NYS: CVS) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CVS Caremark met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins shrank across the board.
CVS Caremark booked revenue of $28.32 billion. The 19 analysts polled by S&P Capital IQ anticipated net sales of $28.11 billion. GAAP sales were 14% higher than the prior-year quarter's $24.77 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.89. The 21 earnings estimates compiled by S&P Capital IQ averaged $0.89 per share on the same basis. GAAP EPS of $0.81 for Q4 were 8.0% higher than the prior-year quarter's $0.75 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 19.6%, 250 basis points worse than the prior-year quarter. Operating margin was 6.9%, 20 basis points worse than the prior-year quarter. Net margin was 3.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $29.60 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $119.49 billion. The average EPS estimate is $3.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,626 members rating the stock outperform and 66 members rating it underperform. Among 439 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 423 give CVS Caremark a green thumbs-up, and 16 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 $45.24.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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