Summary
CVS Health Corporation (CVS) reported a slight decrease in net revenues for both the three and six-month periods ending June 30, 2010, compared to the prior year. This was primarily attributed to the termination of large client contracts and a decrease in covered lives under the Medicare Part D program within its Pharmacy Services segment. Despite the revenue dip, gross profit saw a minor decline, indicating some operational resilience. Operating expenses increased slightly, driven by higher litigation and store operating costs, while interest expense also saw a modest rise due to an increased debt balance. The company repurchased a significant amount of its stock during the period, completing its $2.0 billion repurchase program and initiating a new one, signaling a strong focus on returning capital to shareholders. Cash flow from operations improved year-over-year, driven by better working capital management.
Financial Highlights
57 data points| Revenue | $23.89B |
| Cost of Revenue | $18.99B |
| Gross Profit | $5.01B |
| Operating Expenses | $3.52B |
| Operating Income | $1.49B |
| Interest Expense | $136.00M |
| Net Income | $821.00M |
| EPS (Basic) | $0.61 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 1.36B |
| Shares Outstanding (Diluted) | 1.37B |
Key Highlights
- 1Net revenues declined by 3.5% and 1.0% for the three and six-month periods, respectively, primarily due to client contract terminations and reduced Medicare Part D coverage.
- 2Gross profit saw a modest decrease of 0.6% and 0.3% for the three and six-month periods, respectively.
- 3Operating expenses increased by 1.9% and 0.5% for the three and six-month periods, attributed to higher litigation and store operating costs.
- 4The company repurchased approximately $1.5 billion of its common stock during the first six months of 2010, completing its 2009 repurchase program.
- 5A new $2.0 billion share repurchase program was authorized in June 2010, demonstrating continued commitment to capital return.
- 6Net cash provided by operating activities increased to $1.7 billion in the first six months of 2010 from $1.3 billion in the prior year period.
- 7Basic earnings per common share remained stable at $0.61 for the three months and increased to $1.16 for the six months ended June 30, 2010, compared to the prior year.