• Tue. Apr 20th, 2021

Pharma Oracle

Evolving Today for better Tomorrow

Experts market conclusion: CVS Health Corporation (NYSE: CVS)

On 06 March 2020, CVS Health Corporation (NYSE: CVS) spotted trading -16.72% off 52-week high price. On the other end, the stock has been noted 24.03% away from the low price over the last 52-weeks. The stock changed -0.33% to recent value of $64.15. The stock transacted 11683722 shares during most recent day however it has an average volume of 7915.46K shares. The company has 1308.43M of outstanding shares and 1301.64M shares were floated in the market.

CVS Health Corporation (CVS) recently reported operating results for the three months and year ended December 31, 2019.

Total revenues and adjusted revenues (3) increased 22.9% and 23.1%, respectively, for the three months ended December 31, 2019 contrast to the previous year. Total revenues and adjusted revenues increased 32.0% and 32.3%, respectively, for the year ended December 31, 2019 contrast to the previous year. Revenue growth in both periods was primarily Because of the impact of the acquisition (the “Aetna Acquisition”) of Aetna Inc. (“Aetna”), which the Company purchased on November 28, 2018 (the “Aetna Acquisition Date”), as well as increased volume and brand inflation in both the Pharmacy Services and Retail/LTC sections. The revenue increase in both periods was partially offset by continued price compression in the Pharmacy Services section, continued reimbursement pressure in the Retail/LTC section and a raised generic dispensing rate.

Operating expenses increased 30.9% and 57.0% for the three months and year ended December 31, 2019, respectively, contrast to the previous year primarily Because of the impact of the Aetna Acquisition, including increased intangible asset amortization. The increase for the year ended December 31, 2019 was also Because of the $231M of store rationalization charges and the $205M pre-tax loss on the sale of the Company’s Brazilian subsidiary, Drogaria Onofre Ltda. (“Onofre”), both recorded in the year ended December 31, 2019. The increase for the three months ended December 31, 2019 was partially offset by lower acquisition-related transaction and integration costs.

Adjusted operating expenses (4) increased 35.2% and 52.9% for the three months and year ended December 31, 2019, respectively, contrast to the previous year primarily Because of the addition of Aetna.

Operating income increased $2.2B and $8.0B for the three months and year ended December 31, 2019 , respectively, contrast to the previous year. The increase in both periods was primarily Because of the increase in adjusted operating income described below and the absence of the goodwill impairment charges recorded within the Retail/LTC section in 2018, partially offset by a raise in intangible asset amortization primarily related to the Aetna Acquisition. The increase for the three months ended December 31, 2019 was also Because of lower acquisition-related transaction and integration costs. The increase for the year ended December 31, 2019 was partially offset by the absence of $536M in interest income on the proceeds from the financing for the Aetna Acquisition recorded in the year ended December 31, 2018 and the year ended December 31, 2019 reflecting $231M of store rationalization charges and the $205M pre-tax loss on the sale of Onofre.

Adjusted operating income increased 1.3% and 36.2% for the three months and year ended December 31, 2019, respectively, contrast to the previous year. The increase in both periods was primarily Because of the Aetna Acquisition as well as increased volume and improved purchasing economics in the Pharmacy Services and Retail/LTC sections, partially offset by continued reimbursement pressure in the Retail/LTC section and continued price compression in the Pharmacy Services section.

Net income increased $2.2B and $7.2B for the three months and year ended December 31, 2019, respectively, contrast to the previous year primarily Because of the higher operating income described above, partially offset by higher income tax expense associated with the increase in pre-tax income. The increase for the year ended December 31, 2019 was also partially offset by higher interest expense primarily Because of financing activity associated with the Aetna Acquisition and the assumption of Aetna’s debt as of the Aetna Acquisition Date.

The effective income tax rate was 25.3% and 26.3% for the three months and year ended December 31, 2019, respectively, contrast to 513.7% and 142.4% for the three months and year ended December 31, 2018, respectively. The decrease in the effective income tax rate for both periods was primarily Because of the absence of the goodwill impairment charges recognized during 2018, the majority of which were not deductible for income tax purposes.

Its earnings per share (EPS) expected to touch remained 861.40% for this year while earning per share for the next 5-years is expected to reach at 5.90%. CVS has a gross margin of 38.20% and an operating margin of 4.60% while its profit margin remained 2.60% for the last 12 months.   According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of -5.95% from the mean of 20 days, -9.56% from mean of 50 days SMA and performed -0.48% from mean of 200 days price. Company’s performance for the week was 8.40%, -9.06% for month and YTD performance remained -13.65%.

Leave a Reply

Your email address will not be published. Required fields are marked *