CVS Health's Stock Gains After Profit, Sales Beat Expectations

CVS Health Corp.'s stock rose 1.9% in light, premarket trade on Tuesday, after the drugstore chain reported better-than-expected fourth-quarter profit and sales. For the quarter ended Dec. 31, net earnings rose to $1.32 billion, or $1.14 a share, from $1.27 billion, or $1.05, a share. Excluding non-recurring items, adjusted earnings per share were $1.21, above the FactSet consensus analyst estimate of $1.20. Revenue rose 12.9% to $37.06 billion, beating analyst forecasts of $36.1 billion, boosted by 22% growth in pharmacy services sales. In the retail pharmacy segment, same-store sales increased 1.6%, as a 5.5% rise in pharmacy same-store sales offset a 7.2% drop in front store same-store sales, which were hurt by softer customer traffic. CVS affirmed adjusted earnings-per-share outlook of $1.06 to $1.09 for the first quarter and of $5.05 to $5.19 for 2015. The stock has gained 12% over the past three months through Monday, while the S&P 500 has edged up 0.4%.

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