What Does Wall Street See for CVS Caremark's Q2?

Seth Jayson, The Motley Fool
Updated

CVS Caremark (NYS: CVS) is expected to report Q2 earnings around July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict CVS Caremark's revenues will increase 16.5% and EPS will improve 23.1%.

The average estimate for revenue is $31.02 billion. On the bottom line, the average EPS estimate is $0.80.


Revenue details
Last quarter, CVS Caremark chalked up revenue of $30.80 billion. GAAP reported sales were 20% higher than the prior-year quarter's $25.70 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.65. GAAP EPS of $0.59 for Q1 were 13% higher than the prior-year quarter's $0.52 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 16.6%, 190 basis points worse than the prior-year quarter. Operating margin was 4.6%, 50 basis points worse than the prior-year quarter. Net margin was 2.5%, 30 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $122.79 billion. The average EPS estimate is $3.33.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,660 members out of 1,727 rating the stock outperform, and 67 members rating it underperform. Among 412 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 401 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 $48.68.

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The article What Does Wall Street See for CVS Caremark's Q2? originally appeared on Fool.com.

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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