CVS Buys Aetna as Amazon Healthcare Battle Heats Up


CVS earnings and revenue beat expectations

CVS Health Corp. CVS Thursday premarket reported fourth-quarter earnings and revenue that beat guidance. Net income totaled $3.29 million, or $3.22 per share, up from $1.71 million, or $1.59 per share for the same period last year. Adjusted EPS was $1.92. Revenue for the quarter totaled $48.4 billion, up from $46.0 billion year-over-year. The FactSet consensus was for EPS of $1.89 and sales of $47.54 billion.

Revenue in pharmacy services was up 9.3% to about $34.2 billion, driven largely by growth in the pharmacy network and specialty pharmacy volume.

Retail revenue rose 0.3% to about $20.9 billion driven by a same-store prescription increase of 2.5%.

Same-store sales rose 0.1% and pharmacy same-store sales were up 0.4%. Front store same-store sales fell 0.7%.

CVS expects at least $275 million of tax overhaul benefit which will be used for “strategic investments” and reducing adjusted profit growth by 250 basis points. CVS shares are up 7.8% for the last three months, but down 3.5% for the past year.