CVS Health ( CVS ) is set to announce its Q1 earnings on Tuesday, May 3rd. The year 2015 was a good one for CVS, with earnings in line with consensus estimates. In fiscal year 2015, the company's revenue was $153.3 billion (up 10% from FY 2014) and EPS was $4.62, an increase of almost 17% from the previous year.
For Q1 2016, the market expects total revenue to grow over 18% and earnings to improve by 10 cents a share. In its guidance last quarter, CVS Health indicated that revenue could grow by 17%-18% in quarter ending March 2016.
The Pharmacy Benefit Management division has started strongly for the year 2016 and, after a successful enrolment period for its Medicare plans for 2016, it now has more than 11 million enrolees under its different plans. Also, the acquisitions of Omnicare and Target pharmacies will aid the addition of new customers to CVS. This in turn should drive improved revenue figures for Q1 2016. The cost impact of integrating these two new acquisitions shall impact the figures in the next quarters. Also, the company expects to increase its revenue by improving the existing set of offerings of CVS Pharmacy and healthcare. The company expects to increase the customer base by introducing customer adoption through apps.
Have more questions about CVS Health ( CVS )? Click on the links below:
- What is CVS's Current Revenue & EBITDA Breakdown?
- What's CVS's Fundamental Value Based on Expected 2016 Results?
- By What Percentage Did CVS's Revenue & EBITDA Grow In The Last 5 Years?
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