CVS Caremark (NYS: CVS) reported earnings on Aug. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), CVS Caremark met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins were steady, net margins were steady.
CVS Caremark recorded revenue of $30.71 billion. The 17 analysts polled by S&P Capital IQ predicted sales of $31.02 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $26.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.81. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. GAAP EPS of $0.75 for Q2 were 27% higher than the prior-year quarter's $0.59 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 17.7%, 170 basis points worse than the prior-year quarter. Operating margin was 5.6%, about the same as the prior-year quarter. Net margin was 3.1%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $30.18 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $123.03 billion. The average EPS estimate is $3.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,664 members out of 1,730 rating the stock outperform, and 66 members rating it underperform. Among 406 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 394 give CVS Caremark a green thumbs-up, and 12 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 $50.58.
If you're interested in retailers like CVS Caremark as investments, you should check out the retail concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
Add CVS Caremark to My Watchlist.
The article CVS Caremark Hits Estimates in Solid Quarter 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. The Motley Fool has no positions in the stocks mentioned above. 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.