CVS Health's 3Q profit jumps, but revenue disappoints

Andrew Cummings
November 8, 2016

Major Factors: CVS Health ended third quarter of 2016 on a mixed note, with its bottom-line exceeding the Zacks Consensus Estimate, while the top-line missing the same.Moreover, management narrowed the company's 2016 adjusted EPS guidance, which disappoints us. Following Earnings result, share price were UP 17 times out of last 27 Qtrs.

For the current quarter ending in December, CVS Health expects its per-share earnings to range from $1.64 to $1.70. Mckinley Capital Management LLC Delaware's holdings in CVS Health Corporation were worth $19,082,000 at the end of the most recent quarter. The investment management firm now holds a total of 64,029 shares of CVS Health Corp which is valued at $5,222,846.CVS Health Corp makes up approximately 1.91% of Penobscot Investment Management Company's portfolio. Morgan Stanley reaffirmed a "hold" rating and issued a $104.00 target price on shares of CVS Health Corporation in a research report on Monday, September 12th.

Third-quarter earnings, excluding some items, were $1.64 a share, the Woonsocket, Rhode Island-based company said in a statement, compared with the $1.57 average of analysts' estimates compiled by Bloomberg. Finally, Arcadia Investment Management Corp MI increased its position in CVS Health Corporation by 87.7% in the second quarter. 8,227,429 shares of the company traded hands. The firm has a market cap of $87.76 billion, a price-to-earnings ratio of 18.93 and a beta of 0.88. Analyst had a consensus of $1.30. The company posted revenue of $44615.00 million in the period, compared to analysts expectations of $45294.50 million. The company's revenue was up 17.6% compared to the same quarter past year.

Offers adjusted EPS forecast of $1.64-$1.70 for the fourth quarter versus $1.79 expectations.

CVS Health Corporation together with its subsidiaries is a pharmacy company. The Company operates through three business segments: Pharmacy Services, Retail/LTC and Corporate. The Pharmacy Services segment provides a range of pharmacy benefit management (PBM) services and operates under the CVS/caremark Pharmacy Services Novologix and Navarro Health Services names.

"CVS Health President and Chief Executive Officer Larry Merlo said, ". very recent pharmacy network changes in the marketplace are expected to cause some retail prescriptions to begin migrating out of our pharmacies this quarter. The Corporate segment provides management and administrative services to support the overall operations of the Company.

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