Join        Login             Stock Quote

CVS Caremark (CVS) Raises 2013 Earnings View After Better-Than-Expected 4Q

 February 06, 2013 07:20 AM

(By Balachander) CVS Caremark Corp. (NYSE: CVS) boosted its earnings forecast for 2013 after the health care company posted better-than-expected quarterly earnings helped by a double-digit jump in pharmacy services revenue.

Adjusted earnings per share (EPS) jumped 28 percent to $1.14, beating market expectations of $1.10 for the fourth quarter.

Earnings attributable to CVS Caremark increased 2.7 percent to $1.13 billion.

Revenue climbed 11 percent to $31.4 billion, versus expectations of $31.1 billion. Revenue at the company's pharmacy services and retail pharmacy segments gained 17.4 percent and 5.1 percent, respectively. Retail pharmacy segment same stores sales grew 4.0 percent.

[Related -Express Scripts Holding Company (ESRX): Should You Own ESRX in 2014?]

"Both the PBM and retail segments turned in strong performances at the high end of our expectations," commented CEO Larry Merlo. "And we also realized below-the-line benefits in the quarter from a lower effective tax rate and fewer shares than we originally anticipated, resulting in EPS exceeding the high end of our guidance by approximately three cents per share."

The company attributed the jump in pharmacy services revenue to new client starts related to its 2012 selling season, drug cost inflation, and the growth of its Medicare Part D program.

Pharmacy network claims processed rose 6.5 percent to 205.5 million for the fourth quarter ended Dec. 31.

The company continues to see EPS from continuing operations of $0.77 to $0.80 for the first quarter, while analysts expect 79 cents.

[Related -AFLAC Incorporated (AFL), CVS Caremark Corporation (CVS)A-List Dividend Duo]

For 2013, CVS now expects adjusted EPS in the range of $3.86 to $4.00 from prior expectations of $3.84 to $3.98, while analysts expect $3.94.

The stock, which has been trading in the 52-week range between $42.43 and $52.73, ended Tuesday's regular trading at $51.72.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.