CVS Profit, Sales Rise In Line With Expectations

By Tomi KilgoreMarketWatch Pulse

CVS Health Corp. reported Tuesday fourth-quarter earnings that rose to $1.5 billion, or $1.34 a share, from $1.32 billion, or $1.14 a share, in the same period a year ago. Excluding non-recurring items, such as one-time charges for transaction and legal costs, earnings per share came to $1.53, matching the FactSet consensus. Revenue increased to $41.15 billion from $37.06 billion, compared with the FactSet consensus of $41.1 billion, with pharmacy services revenue rising 11% to $26.5 billion and retail revenue climbing 13% to $19.9 billion. The drugstore chain affirmed its 2016 adjusted EPS outlook of $5.73 to $5.88, which surrounds the FactSet consensus of $5.82. "We grew our core business with the acquisition of Target's pharmacies and clinics and expanded our reach with the acquisition of Omnicare, the leader in long-term care pharmacy," said Chief Executive Larry Merlo. The stock, which slipped 0.7% in premarket trade, has lost 8.5% over the past three months, while the S&P 500 has declined 11%.

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