CVS Caremark Corp. (NYSE: CVS), the largest U.S. pharmacy service provider, is scheduled to report first quarter FY 2011 financial results before the opening bell on May 5.
For the first quarter, analysts' EPS estimates range from a low of $0.54 to a high of $0.57 per share, compared with a consensus estimate of $0.55 per share to $0.60 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $25.22 billion to a high of $27.05 billion, compared with a consensus estimate of $25.87 billion to $23.76 billion in the same quarter a year ago. For the first quarter, the consensus EPS forecast has remained unchanged for the last 60 days.
In the last quarter, the company's reported EPS exceeded market expectations by a margin of 1.30 percent.
For Q4 FY 2010:
- Revenue decreased 4.1 percent, or $1.0 billion, to $24.8 billion, down from $25.8 billion in the fourth quarter FY 2009.
- Net income from continuing operations was $1.02 billion, down 2.3 percent, compared with net income of $1.05 billion in the comparable quarter last fiscal.
- Earnings for the quarter were $0.80 per share, compared with $0.79 per share in the prior year period.
- Same store sales increased 1.7 percent in the fourth quarter FY 2010.
For full year 2010, total revenue decreased 2.3 percent, or $2.3 billion, to $96.4 billion, compared with $98.7 billion for the year ended December31, 2009. Net income for the year was $3.4 billion, down 7.2 percent, compared with $3.7 billion in FY 2009. Earnings for the year were $2.69 per share, compared with earnings of $2.74 per share in the prior year.
During the first quarter FY 2011, CVS Caremark completed the acquisition of the Medicare Part D business of Universal American. CVS Caremark paid Universal American shareholders cash consideration of $1.25 billion plus the excess capital in the entities that operate Universal American's Medicare Part D business, less Universal American's outstanding trust preferred securities, which are being assumed by CVS Caremark.
Through its integrated offerings across the entire spectrum of pharmacy care, CVS is uniquely positioned to provide greater access to engage plan members in behaviors that improve their health and to lower overall health care costs for health plans, plan sponsors and their members.
The company expects to generate substantial free cash flow in 2011 of $4.0 billion to $4.2 billion, up from the $3.3 billion generated in 2010. The company expects to generate cash flow from operations in 2011 of $5.5 billion to $5.7 billion. The company also expects to deliver adjusted diluted earnings per share from continuing operations of $2.72 to $2.82, and GAAP diluted earnings per share from continuing operations of $2.52 to $2.62 per share in 2011.
CVS last traded at 36.51, up 0.36 points, or 1 percent on Tuesday.