Summary
CVS Health Corporation (CVS) reported solid financial results for the quarter and six months ended June 30, 2015, showcasing continued revenue growth driven by both its Pharmacy Services and Retail Pharmacy segments. Net revenues increased across both periods, reflecting growth in specialty pharmacy, increased pharmacy network claims, and comparable store sales in the retail segment. The company also demonstrated a commitment to returning value to shareholders through significant share repurchases. Strategically, CVS Health is actively pursuing growth through acquisitions, with the significant proposed acquisitions of Omnicare and Target's pharmacy and clinic businesses poised to further expand its integrated healthcare offerings and market reach.
Financial Highlights
56 data points| Revenue | $37.17B |
| Cost of Revenue | $30.77B |
| Gross Profit | $6.40B |
| Operating Expenses | $4.14B |
| Operating Income | $2.26B |
| Interest Expense | $171.00M |
| Net Income | $1.27B |
| EPS (Basic) | $1.13 |
| EPS (Diluted) | $1.12 |
| Shares Outstanding (Basic) | 1.12B |
| Shares Outstanding (Diluted) | 1.13B |
Key Highlights
- 1Net revenues increased by 7.4% for the three months and 9.2% for the six months ended June 30, 2015, year-over-year.
- 2Pharmacy Services segment revenue grew, driven by specialty pharmacy expansion and increased network claims.
- 3Retail Pharmacy segment revenue saw an increase, supported by pharmacy same-store sales and new store contributions.
- 4The company repurchased approximately $2.9 billion of its common stock during the first six months of 2015.
- 5CVS Health announced two significant proposed acquisitions: Omnicare for approximately $10.6 billion and Target's pharmacy and clinic businesses for $1.887 billion.
- 6The company issued $14.8 billion in unsecured senior notes to fund these proposed acquisitions.
- 7Diluted earnings per share increased to $1.12 for the three months and $2.19 for the six months ended June 30, 2015, compared to the prior year.