CVS Produces Healthy Q4 Results

CVS Health put in a strong enough performance to beat Wall Street estimates in the 2019 fourth quarter as the retailer continued to integrate its Aetna acquisition into its operations.

For the three months ended December 31, CVS posted net income of $1.74 billion, or $1.33 per diluted share, versus a loss of $421 million, or 37 cents per diluted share, in the period a year prior.

Adjusted net income from continuing operations was $2.27 billion, or $1.73 per share, versus $2.42 billion, or $2.14 per share, in the year-earlier quarter. The company topped a MarketBeat-published consensus analyst estimate of $1.68 per adjusted share.

Total revenues were $66.89 billion versus $54.42 billion in the year-earlier quarter.

For the full fiscal year, CVS posted net income of $6.63 billion, or $5.08 per diluted share, versus a loss of $596 million, or 57 cents per diluted share, in the period a year prior. Adjusted net income was $9.24 billion, or $7.08 per share, versus $7.41 billion, or $7.08 per share, in the year-earlier quarter.

Total revenues were $256.78 billion versus $194.58 billion in the year-earlier quarter.

In the retail/LTC segment, which includes store results, total revenues for the fourth quarter were $22.58 billion versus $22.03 billion in the year-previous quarter. Comparable sales increased 3.2% while front store comps, including results from general merchandise such as home goods, gained 0.7% in the period year over year.

For the full fiscal year in the segment, total revenues were $86.61 billion versus $83.99 billion in the year-previous quarter. Comp sales increased 3.7% with front store sales gaining 1.1%.

Larry Merlo, CVS president and CEO, said, “As we work to transform the way health care is delivered to millions of Americans, we are driving continued business performance and generating positive momentum across the enterprise. Our fourth quarter and full-year financial results reflect strong financial and operational execution and a successful first year of integrating the Aetna business. We’re using our unmatched capabilities to create a higher quality, simpler and more affordable health care experience, which benefits patients, clients and consumers and positions the company for continued success. Client, patient and consumer reception to our innovative product and service offerings, including our HealthHub locations, has been positive.”