Post-Earnings Coverage - CVS Health

LONDON, December 1, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on CVS Health Corp. (NYSE: CVS). On November 04, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on CVS Health Corp. (CVS Health). For Q3 FY14, the company's net revenue and operating profit increased 9.7% and 4.3%, respectively, on a Y-o-Y basis. The President and CEO of CVS Health, Larry Merlo,  stated that the company's strong results in Q3 FY14 reflect better-than-expected revenue growth across the enterprise and expanding retail gross margins. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

CVS Health's net revenue increased to $35.0 billion in Q3 FY14 from $31.9 billion in Q3 FY13. The company's reported revenues beat Bloomberg analysts' forecasts of $34.7 billion. CVS Health's revenues from its pharmacy services segment increased 15.7% Y-o-Y to $22.5 billion in Q3 FY14. The increase was driven by growth in specialty pharmacy including the acquisition of Coram and the impact of Specialty Connect^®, as well as the increased volume in pharmacy network claims. Further, the company's Q3 FY14 revenues from its retail pharmacy segment increased 3.1% Y-o-Y to $16.7 billion. Additionally, the company's same store sales increased 2.0% on Y-o-Y basis, with a 4.8% Y-o-Y growth in pharmacy same store sales, and a 4.5% Y-o-Y decline in front store same store sales. The free research on CVS can be downloaded as in PDF format at:

www.Investor-Edge.com/CVSFreeReport

The company's net income during Q3 FY14 declined 24.1%, or approximately $301 million, to $948.0 million, or $0.81 per diluted share, from $1,249.0 million, or $1.02 per diluted share, in Q3 FY13. The decline in net income was primarily due to a $521 million pre-tax loss ($0.27 per share) on the early extinguishment of debt. Excluding the loss on early extinguishment of debt and a $72 million pre-tax gain ($0.04 per share) from a legal settlement in 2013, net income increased 5.0%. Analysts from Bloomberg had expected the company to report net income of $1,233.0 million or $1.06 per share.

Mr. Merlo informed that the company continued to deliver substantial free cash flow, enabling it to return more than $3.7 billion to its shareholders year to date. He added that the company is well on track to return more than $5 billion to its shareholders through dividends and share repurchases for FY14. Sign up and read the free analyst's notes on CVS at:

www.Investor-Edge.com/CVS-01122014

The company narrowed its earnings guidance range for FY14, expecting adjusted EPS of $4.47 to $4.50, versus previous estimates of $4.43 to $4.51, excluding the $0.27 per share loss on early extinguishment of debt. CVS Health projects FY14 GAAP diluted EPS from continuing operations of $3.93 to $3.96, including the loss on the early extinguishment of debt. Meanwhile, CVS Health has raised its FY14 free cash flow guidance range to $5.7 billion to $6.0 billion, from $5.5 billion to $5.8 billion, and raised FY14 cash flow from operations range to $7.4 billion to $7.7 billion, from $7.2 billion to $7.5 billion. Further, the company expects to deliver adjusted EPS of $1.18 to $1.21 and GAAP diluted EPS from continuing operations of $1.12 to $1.15 in Q4 FY14.

Stock Performance  

On the day of the earnings release, November 04, 2014, CVS Health's stock ended the session at $85.47, down 0.75%. The stock has witnessed mostly an upward movement since then. On the last close, Friday, November 28, 2014, the stock finished 0.52% higher at $91.36, after vacillating between $91.14 and $92.00. A total of 1.97 million shares were traded, which was below its three months average volume of 4.36 million shares. Over the last one month and over the previous three months, the company's shares have advanced 7.24% and 14.99%, respectively. Further, the stock has surged 27.65% since the start of 2014. Shares in CVS Health closed above their 50-day and 200-day moving averages of $84.57 and $78.27, respectively. Furthermore, the stock traded at a PE ratio of 21.92. Visit Investor-Edge and access the latest research on CVS at:

www.Investor-Edge.com/CVSEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month, there were 20 insider transactions made by 10 individuals. Between October 27, 2014 and November 07, 2014, a total of 86,789 shares of CVS Health have been purchased at an average price of $46.89 per share, for a total value of $4,069,617. Whereas, a total of 79,832 shares, worth $6,927,675 were disposed at an average price of $86.78 per share during the same period. These are some of the transactions: On October 27, 2014, Lisa G. Bisaccia, Senior Vice President and Chief Human Resources Officer at CVS Health, purchased a total of 27,586 shares at an average price of $40.65 per share. On the same day, Ms. Bisaccia disposed 33,507 shares at $85.00 per share. Furthermore, on November 07, 2014, Helena B. Foulkes, Executive Vice President at CVS Health, bought 46,325 shares at an average price of $39.32 per share. However, on the same day, she disposed an equal number of shares at an average price of $88.06 per share. Complimentary in-depth research on CVS is available at:

www.Investor-Edge.com/CVSInsiderTrading

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