CVS Sees Declining Revenue
Zacks.com submits:
CVS Caremark (CVS) reported an adjusted EPS of 80 cents in the fourth quarter of fiscal 2010, beating both the Zacks Consensus Estimate and the year-ago period by a penny. For the full year, the adjusted EPS of $2.69 was in line with the Zacks Consensus Estimate. However, the EPS declined compared to the previous year’s $2.74. Revenues decreased 4.1% year over year to $24.8 billion as its Pharmacy Services segment still disappoints. However, revenues marginally missed the Zacks Consensus Estimate of $24.9 billion. For the full year, revenues declined 2.3% to reach $96.4 billion, missing the Zacks Consensus Estimate of $96.6 billion. A 3% decline in share count had a favorable impact on the bottom line. The Pharmacy Services segment recorded a 9.7% decline in revenues during the quarter to reach $12.2 billion, driven by the termination of some large contracts (effective since January 2010) announced by the company earlier. In addition, the coverage of Medicare Part D program shrunk due to the 2010 competitive bidding process, partially offset by new client wins. However, after adjusting for the recent generic introductions, the decline in revenues would be less at 2.4%. Revenues from CVS’s other segment, Retail Pharmacy, increased 3.1% to $14.9 billion during the quarter with a 1.7% increase in total same-store sales. While pharmacy same-store sales rose 2.0%, front-end same-store sales increased 1.0%. Pharmacy Services same-store sales were negatively impactComplete Story »
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