CVS Caremark Beats on Both Top and Bottom Lines
CVS Caremark (NYS: CVS) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), CVS Caremark beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved.
Margins contracted across the board.
CVS Caremark chalked up revenue of $30.80 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $30.29 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $25.88 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 $0.65. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. GAAP EPS of $0.59 for Q1 were 13% higher than the prior-year quarter's $0.52 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 16.6%, 180 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.
Next quarter's average estimate for revenue is $30.00 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $121.53 billion. The average EPS estimate is $3.29.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,641 members out of 1,708 rating the stock outperform, and 67 members rating it underperform. Among 415 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 406 give CVS Caremark a green thumbs-up, and nine 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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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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