CVS Health reported better-than-expected 2Q earnings and raised its full-year guidance. The company is bullish on its diverse business, including its drugstore chain and health benefits, and believes that it is well-positioned to weather the impact of the coronavirus pandemic.
CVS) reported 2Q adjusted earnings of $2.64 per share, up from $1.89 per share in the year-ago period, and beating analysts’ estimates of $1.93 per share. Revenue during the reported quarter grew 3% to $65.3 billion year-on-year marginally higher than the Wall Street consensus of $64.2 billion.” data-reactid=”13″>CVS Health (CVS) reported 2Q adjusted earnings of $2.64 per share, up from $1.89 per share in the year-ago period, and beating analysts’ estimates of $1.93 per share. Revenue during the reported quarter grew 3% to $65.3 billion year-on-year marginally higher than the Wall Street consensus of $64.2 billion.
For the full-year, the company raised its adjusted earnings guidance to $7.14- $7.27, from the earlier forecast of $7.04 -$7.17. CVS now expects full-year cash flow from operations to be between $11 billion-$11.5 billion, up from the previous guidance of $10.5 billion-$11 billion.
Michael Wiederhorn maintained a Hold rating on the stock saying: “The Retail segment softened after a robust end to Q1 ($1.06B vs OPCO/Street $1.15B/$1.34B) due to COVID-related impacts to op-expenses and volumes, while the Pharmacy segment ($1.33B vs. OPCO/Street $1.28B/$1.34B) was largely in-line, overcoming softer new prescriptions and incremental costs.”” data-reactid=”19″>Oppenheimer analyst Michael Wiederhorn maintained a Hold rating on the stock saying: “The Retail segment softened after a robust end to Q1 ($1.06B vs OPCO/Street $1.15B/$1.34B) due to COVID-related impacts to op-expenses and volumes, while the Pharmacy segment ($1.33B vs. OPCO/Street $1.28B/$1.34B) was largely in-line, overcoming softer new prescriptions and incremental costs.”
Moderate Buy analyst consensus is based on 5 Buys and 4 Holds. The average price target of $74.71 implies an upside potential of about 15%. (See CVS stock analysis on TipRanks).” data-reactid=”20″>Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 5 Buys and 4 Holds. The average price target of $74.71 implies an upside potential of about 15%. (See CVS stock analysis on TipRanks).
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