CVS Health Beats Projections in Second Quarter

  • CVS Health Beats Projections in Second Quarter

CVS Health Beats Projections in Second Quarter

Trust Co. of Vermont increased its holdings in shares of CVS Health by 47.8% in the 2nd quarter.

Adjusted operating income for the quarter was $4 billion, up 55% from about $2.6 billion in the second quarter of 2018. Crossmark Global Holdings Inc. now owns 114,641 shares of the pharmacy operator's stock worth $6,247,000 after buying an additional 2,528 shares during the period. CVS will open approximately 100 stores this year, down from an average of 300 locations annually just a couple of years back, and only about 50 stores next year, CVS Pharmacy president Kevin Hourican told analysts on the company's quarterly earnings call.

Profit in the latest quarter rose to $1.94 billion, or $1.49 a share, compared with a loss of $2.56 billion, or a loss of $2.52 a share, in the year-earlier quarter. Finally, Centric Wealth Management lifted its holdings in CVS Health by 9.3% during the second quarter. Geode Capital Management LLC now owns 16,462,292 shares of the pharmacy operator's stock valued at $1,076,697,000 after buying an additional 4,376,604 shares during the period. Capital Investment Advisory Services LLC increased its position in CVS Health by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 13,790,753 shares of the pharmacy operator's stock valued at $903,574,000 after buying an additional 3,041,266 shares during the period. Calton & Associates Inc. purchased a new stake in CVS Health during the second quarter worth $238,000. Institutional investors own 77.33% of the company's stock.

Hourican told CNBC that the reduction in store growth is "a natural change" given the number of stores CVS operates and the growth in areas such as delivery. UBS Group cut their price target on shares of CVS Health from $74.00 to $67.00 and set a "sell" rating for the company in a report on Thursday, May 2nd. The health Company will look to carry this momentum through the rest of the year. The stock of CVS Health Corporation (NYSE:CVS) has "Overweight" rating given on Monday, April 29 by Morgan Stanley. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. BMO Capital Markets set a $63.00 price target on CVS Health and gave the stock a "hold" rating in a research report on Friday, May 3rd. 17,069,749 shares of the company's stock traded hands, compared to its average volume of 7,638,115. The company has a debt-to-equity ratio of 1.45, a current ratio of 0.95 and a quick ratio of 0.64.

FILE PHOTO: A logo of CVS Health is displayed on a monitor above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 5, 2017. The firm has a market capitalization of $70.27 billion, a P/E ratio of 7.53, a P/E/G ratio of 1.22 and a beta of 0.90. The pharmacy operator reported $1.89 earnings per share (EPS) for the quarter, topping the Zacks' consensus estimate of $1.70 by $0.19. CVS's health insurance unit reported revenue of Dollars 17.4 Billion, also beating analyst estimates which came in at USD 17.3 Billion.

In the retail and long-term care segment, revenue rose to $21.45 billion from $20.67 billion a year earlier, the company said, with inflation in drug prices and higher prescription volumes "partially offset by continued reimbursement pressure and the impact of generic drug introductions". During the same period in the previous year, the business earned $1.69 EPS. Investors of record on Thursday, July 25th were paid a $0.50 dividend.