Summary
CVS Health Corporation (CVS) reported its first quarter 2009 financial results, highlighting a 9.8% increase in net revenues to $23.4 billion, driven significantly by the acquisition of Longs Drug Stores. Despite revenue growth, net earnings saw a slight decrease of 1.3% to $738.4 million compared to the prior year period. This decline is attributed to a loss from discontinued operations related to lease obligations and increased operating expenses, partly due to integration costs from the Longs acquisition. The company's performance demonstrates continued top-line growth, supported by strategic acquisitions and an expanding retail footprint, while navigating the complexities of integrating new businesses and managing ongoing operational costs.
Financial Highlights
29 data points| Revenue | $23.39B |
| Cost of Revenue | $18.65B |
| Gross Profit | $4.75B |
| Operating Expenses | $3.37B |
| Operating Income | $1.38B |
| Net Income | $739.00M |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.50 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.47B |
Key Highlights
- 1Net revenues increased by 9.8% to $23.4 billion, largely due to the acquisition of Longs Drug Stores, which contributed approximately $1.4 billion.
- 2Net earnings decreased by 1.3% to $738.4 million, or $0.50 per diluted share, from $748.5 million, or $0.51 per diluted share, in the prior year quarter.
- 3The Pharmacy Services segment reported a 7.2% increase in net revenues to $11.5 billion, with a notable rise in generic dispensing rates.
- 4The Retail Pharmacy segment saw its net revenues grow by 13.9% to $13.5 billion, with same-store sales increasing by 3.3% overall.
- 5Operating expenses rose by 15.3% due to the Longs acquisition and related integration costs.
- 6The company issued $1.0 billion in unsecured senior notes to repay borrowings and for general corporate purposes, demonstrating active debt management.
- 7A loss of $5.1 million from discontinued operations was recorded, primarily related to lease guarantee obligations for divested subsidiaries like Linens 'n Things.