CVS Health CorporationNYSE
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Uncommon Profit Investor • 21 Comments
Uncommon Profit Investor • 21 Comments
Wed, Nov. 23, 4:48 AM
- If you use aloe vera gel from Walmart (NYSE:WMT), Target (NYSE:TGT) or CVS, you might be soothing burns with sugar rather than extract from a plant.
- According to Bloomberg, multiple lab tests of the retailer's store-brand gel showed no traces of aloe vera, even though it's listed as the first or second ingredient in every case.
- How could this happen? The FDA doesn't approve cosmetics before they hit store shelves, so it's up to suppliers to make good on their promises.
Mon, Nov. 14, 8:00 AM
- Barron's points to a handful of companies which could benefit significantly from a lower corporate tax rate in the future as a result of the GOP election sweep last week.
- Altria Group (NYSE:MO), CSX (NYSE:CSX), Dollar General (NYSE:DG), Kohl's (NYSE:KSS) and CVS Health (NYSE:CVS) all paid out effective tax rates of over 36% during the last five years.
Fri, Nov. 11, 4:57 PM
- Albertsons and Kroger (NYSE:KR) have emerged as key prospective suitors for Walgreens (NASDAQ:WBA) in its attempts to find a way to satisfy the FTC's review of the company's proposed acquisition of Rite Aid (NYSE:RAD), while CVS (NYSE:CVS) seems to have withdrawn interest, CTFN reports.
- Walgreens has not yet "freshened up the package" of store selloffs that it plans to present to the FTC, according to the report, which cites an antitrust attorney, who also says that "Albertsons and Kroger are established retail players with experience in pharmacies" and that the assets they are eyeing represent "key geographic expansion for both."
Tue, Nov. 8, 9:17 AM
Tue, Nov. 8, 8:31 AM
- CVS Health (CVS) Q3 results: Revenues: $44,615M (+15.5%); Operating Income: $2,817M (+20.8%); Net Income: $1,542M (+24.7%); EPS: $1.43 (+30.0%); Non-GAAP EPS: $1.64 (+28.1%); Quick Assets: $2,263M (-11.2%); CF Ops: $7,948M (+64.2%).
- Q4 Guidance: GAAP EPS: $1.52 - 1.58; Adjusted EPS: $1.64 - 1.70.
- 2016 Guidance: GAAP EPS: $4.84 - 4.90 from $4.92 - 5.00; Adjusted EPS: $5.77 - 5.83 from $5.81 - 5.89; CF Ops: $9.3B- 9.5B; FCF: $6.8B - 7.0B.
- 2017 Preliminary Outlook: GAAP EPS: $5.16 - 5.33; Non-GAAP EPS: $5.77 - 5.93.
- Shares are down 15% premarket.
Tue, Nov. 8, 6:56 AM
Mon, Nov. 7, 5:30 PM
Thu, Nov. 3, 10:18 AM
Thu, Nov. 3, 8:24 AM
Fri, Oct. 28, 11:22 AM
- Drug wholesaler McKesson's (MCK -23.2%) lackluster Q3 numbers and softer guidance due to pricing pressure is weighing on the entire drug supply chain. Competitors AmerisourceBergen (ABC -11.9%) and Cardinal Health (CAH -11.2%) report next week.
- Representative tickers: (ESRX -4.5%)(CVS -3.9%)(WBA -2.7%)(RAD -0.9%)(UNH +0.1%)
Sun, Oct. 16, 9:49 AM
- "Value investing works like clockwork, but sometimes your clock has to be very slow," says Joel Greenblatt, asked in a Barron's interview about the recent underperformance of some of his funds. The man behind the classic "You Can Be A Stock Market Genius" also published a barely-read "The Big Secret For The Small Investor" five years ago, noting, among other things, that average investors tend to dump good strategies at precisely the wrong time.
- Favorite longs in his long/short portfolio now include Apple (NASDAQ:AAPL), with double-digit cash flow yields vs. the S&P 500 at less than half of that. "People worry that it’s effectively a hardware company that will crash and burn. But it’s also an ecosystem of products that play with one another and a brand people like."
- He owns not just Apple, he says, but a "bucket" of Apples - companies with gushing cash flow, huge returns on capital, and nice market niches. Qualcomm (NASDAQ:QCOM) and CVS fit the bill.
- On the short side is Salesforce.com (NYSE:CRM) at 218x pretax earnings and 7x sales. Even if optimistic earnings estimates prove true, it's still selling for 50x. Others include Costco (NASDAQ:COST) - a great retailer, but still a retailer - at 28x earnings, but not growing and also competing with Amazon. Another is Caterpillar (NYSE:CAT), which has fans thanks to its 3.5% yield, but doesn't earn enough to pay that dividend.
- Gotham funds: GENIX, GARIX, GONIX, GINDX
Wed, Sep. 28, 9:19 AM
- Private equity firms aren't showing a great deal of interest in the 650 retail stores being unloaded by Walgreens Boots Alliance (NASDAQ:WBA) in order to comply with the FTC's ruling on the Rite Aid (NYSE:RAD) merger, reports New York Post. Many of the stores are seen as unprofitable investments.
- The lack of interest could pave the way for CVS Health (NYSE:CVS) to step in and buy stores selectively if the FTC and Walgreens back off the stated goal of finding a single buyer.
- The 650 units on the sales block only represent 5% of the total Walgreens-Rite Aid store count.
Thu, Sep. 22, 12:19 PM
Thu, Sep. 15, 9:02 AM
- Retail sales fell in August on a month-over-month comparison. The drop wasn't a large surprise considering the onslaught of warnings from the retail sector on store traffic.
- 8 out of the 13 retail categories showed negative growth during the month, with the largest drops recorded in the building material/garden equipment/supplies dealers and miscellaneous store retailers categories. The broad weakness turned on its head the argument that money freed up from a lower level of auto sales would be funneled into other consumer purchases.
- Food services and drinking places showed a +0.9% M/M and +5.8% Y/Y increase in a somewhat surprising result considering the harsh read from Black Box Intelligence on August same-store sales in the restaurant sector BITE. Is the discrepancy an indication that independent restaurants are taking market share?
- On a year-over-year basis, retail sales were up 1.9%. As expected the Amazon-influenced nonstore retailers category did the heavy lifting with an 11% gain. Larger U.S. retail chains (WMT, SPLS, TGT, BBY, DG, COST, KR, WBA, CVS, LOW, HD, SWY) have been raising the issue of pricing pressure in recent conference presentations and guidance updates which could be a nagging sales deflator for the balance of the year.
- Previously: Retail sales disappoint in August (Sept. 15)
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, CNDF, CNSF, IBUY, JHMC, JHMS.
Tue, Aug. 2, 10:03 AM
- CVS Health (CVS +3.8%) Q2 results: Revenues: $43,725M (+17.6%); Operating Income: $2,350M (+3.9%); Net Income: $924M (-27.4%); EPS: $0.86 (-23.2%); Non-GAAP EPS: $1.32 (+8.2%); Quick Assets: $1,207M (-52.6%); CF Ops: $4023M (+33.2%).
- Q3 Guidance: GAAP EPS: $1.38 - 1.41; Adjusted EPS: $1.55 - 1.58.
- 2016 Guidance: GAAP EPS: $4.92 - 5.00 from $5.24 - 5.39; Adjusted EPS: $5.81 - 5.89 from $5.73 - 5.88; CF Ops: $8.8B - 9.1B from $7.6B - 7.9B; FCF: $6.3B - 6.6B from $5.3B - 5.6B.
Tue, Aug. 2, 6:58 AM