Express Scripts Is A Better Investment Than CVS
Uncommon Profit Investor • 21 Comments
Uncommon Profit Investor • 21 Comments
May 22, 2014, 3:30 PM
May 19, 2014, 12:09 PM
May 15, 2014, 10:54 AM
- CVS Caremark (CVS -0.9%) announces it has entered a new clinical affiliation with four different regional healthcare systems.
- The new partners are Hartford HealthCare, Memorial Health, Lahey Health, and Baystate Health.
- The company says the new affiliations are the first to utilize clinical work with MinuteClinic (CVS' medicial clinic division) combined with work from CVS pharmacists.
May 2, 2014, 7:27 AM
- Revenues: $32.7B (+6.3%): Pharmacy Services: $20.2B (+10.3%) generic dispensing rate: 82.4% (+2.4%), Retail Pharmacy: $16.5B (+2.7%) generic dispensing rate: 82.9% (+ 2.1%).
- Net income: $1.1B (+18.3%), EPS: $0.95 (+23.3%).
- Retail pharmacy same store prescription volumes: +2.1%.
- Retail pharmacy same store sales: +1.4%.
- CF Ops: $2.2B (+34.1%).
- Q2 guidance:
- EPS: $1.01 $1.04.
- 2014 guidance:
- EPS: $4.09 - $4.23.
- CF Ops: $7.0B - $7.3B.
May 2, 2014, 7:18 AM
- CVS Caremark (CVS) reports revenue in its Pharmacy Services segment rose 10.3% to $20.2B in Q1.
- The Retail Pharmacy segment saw a 2.7% increase to $16.5B on a same-store sales gain of 1.4%.
- Gross profit rate improved by 70 bps for the Retail Pharmacy segment and 40 bps for the Pharmacy Services segment.
- A weaker flu season this year had an impact on the company's results.
May 2, 2014, 7:01 AM
- CVS Caremark (CVS): Q1 EPS of $1.02 misses by $0.01.
- Revenue of $32.7B (+6.3% Y/Y) beats by $390M.
May 1, 2014, 5:30 PM
Apr. 11, 2014, 4:01 AM
- The White House has confirmed that Health & Human Services Secretary Kathleen Sebelius is resigning and will be replaced by Sylvia Burwell, the director of the Office of Management & Budget, assuming the latter is confirmed by the Senate.
- Sebelius' departure comes after she said in October that she should be held "accountable for the debacle" of the launch of Obamacare, although the program did reach the government's target of 7M sign-ups by the end of March. She said yesterday that at least 7.5M people have enrolled.
- One of Burwell's first challenges will be to work with health insurers as they set prices for Obamacare plans in 2015, which industry executives have warned could rise sharply.
- More on Obamacare
- Health insurers: AET, HNT, HUM, UNH, WLP, MO
- Hospital operators: HCA, CYH, THC, UHS, HMA, LPNT
- Pharmacies: WAG, CVS, BIOS, RAD, MHS, PMC, OCR
- ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS
Apr. 10, 2014, 10:57 AM
- Per CVS Caremark's (CVS) Insights report prescription drug trend rose 3.8% last year versus flat growth in 2012. Growth drivers were price inflation and increased utilization (more prescriptions per member).
- Specialty medications that treat more complex diseases grew by 15.6%.
- The company generates the report, which includes an outline of cost containment strategies, to assist payers with their management of prescription drug spending.
- Drug trend is the measure of growth in prescription spending per member per month.
- The generic dispensing rate was 81.4%.
- (RAD) (WAG)
Apr. 8, 2014, 1:46 PM| Apr. 8, 2014, 1:46 PM
Mar. 26, 2014, 7:32 AM
- Amidst the flurry of regulatory warnings to Indian generic drug manufacturers, other firms will quickly step in to satisfy demand. Those who can demonstrate a strong emphasis on quality will have an edge.
- India's Ranbaxy Labs, the largest manufacturer by sales, had its products banned by the FDA in January because of repeated quality problems.
- (ACT) (TEVA) (MYL) (CVS) (WAG)
Mar. 6, 2014, 2:34 PM
- CVS Caremark Corporation (CVS) declares $0.275/share quarterly dividend, in line with previous.
- Forward yield 1.50%
- Payable May 2; for shareholders of record April 22; ex-div April 17.
Feb. 28, 2014, 12:49 PM
Feb. 15, 2014, 10:40 AM
- The decision by CVS Caremark (CVS) to stop selling tobacco products will add to profits despite the immediate hit to revenue from lost cigarette sales, according to analysts watching the sector.
- Mizuho Securities sees a $0.16-$0.21 per share benefit right off the top if CVS renews a deal with the Federal Employee Health Program at the end of the year.
- Other analysts have their eyes on recent trends showing CVS gaining momentum in improving its margins and supply cost reductions.
- The savings from the tobacco exit start piling up even more if CVS wins more market share in pharmacy benefits management with its shift toward becoming a favored health services company.
- What to watch: CVS trades with a valuation that is roughly on par with the S&P 500, but investors may be discounting its transcendent ability to grow profits through its evolution.
Feb. 11, 2014, 9:59 AM
- Tobacco was a major topic during CVS Caremark's (CVS +2.9%) earnings call this morning.
- Execs say the exit from the category will align the company with the goals of patients, clients, and providers.
- Of note, 2014 EPS guidance and five-year financial targets are unchanged despite the new strategy which will send some customers to other retail chains.
- The tone from management suggests that the company is already seeing a general trend toward pharmacy sales outpacing front-end sales so the tobacco play might be less dramatic than feared by some.
- Earnings call webcast
Feb. 11, 2014, 7:16 AM
- CVS Caremark (CVS) saw broad sales growth in Q4, with Pharmacy Services revenue up 5.2% and Retail Pharmacy sales growth of 5.6%.
- Retail Pharmacy Segment same store sales rose 4.0% during the period.
- Gross profit rate fell 60 bps to 30.7%.
- The company expects 2014 EPS of $4.36-$4.50 vs. $4.47 consensus.
- A conference call is scheduled for 8:30 am where more details on the company's exit from tobacco could be discussed. (webcast)
- CVS +0.7% premarket
CVS Health Corp. is integrated pharmacy health care provider in the U.S. The company reinvents pharmacy for better health and develops new ways to improve access for patients, promote better health outcomes and control payor costs in a way that no pharmacy retailer or PBM could do separately. It... More
Industry: Drug Stores
Country: United States
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