CVS HEALTH Corporation (CVS) has reported 13.95 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1,707 million, or $1.59 a share in the quarter, compared with $1,498 million, or $1.34 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,827 million, or $1.71 a share compared with $1,704 million or $1.53 a share, a year ago.
Revenue during the quarter grew 11.73 percent to $45,971 million from $41,145 million in the previous year period. Gross margin for the quarter contracted 120 basis points over the previous year period to 16.55 percent. Total expenses were 93.49 percent of quarterly revenues, up from 93.37 percent for the same period last year. That has resulted in a contraction of 12 basis points in operating margin to 6.51 percent.
Operating income for the quarter was $2,995 million, compared with $2,729 million in the previous year period.
President and chief executive officer Larry Merlo stated, "In 2016, we delivered strong results across the enterprise, with revenues up nearly 16% and Adjusted EPS up more than 13%. Adjusted EPS in the fourth quarter came in just above the high end of our guidance, as the Retail/LTC segment delivered results in line with our expectations while the PBM exceeded expectations. We also generated more than $8 billion in free cash for the full year, exceeding our expectation, and we returned more than $6 billion to shareholders through dividends and share repurchases. Our substantial cash generation capabilities provide opportunities to bolster our growth, and we will continue to be thoughtful and disciplined with respect to using our free cash to return value to shareholders."
For the first-quarter, CVS HEALTH Corporation forecasts adjusted net income to be in the range of $1,111 million to $1,173 million. The company forecasts diluted earnings per share to be in the range of $0.82 to $0.88. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.07 to $1.13.
For the fiscal year 2017, CVS HEALTH Corporation forecasts adjusted net income to be in the range of $5,987 million to $6,160 million. The company forecasts diluted earnings per share to be in the range of $5.02 to $5.18, the company forecasts diluted earnings per share to be in the range of $5.77 to $5.93 on adjusted basis.
Operating cash flow improvesCVS HEALTH Corporation has generated cash of $10,069 million from operating activities during the year, up 19.70 percent or $1,657 million, when compared with the last year. The company has spent $2,470 million cash to meet investing activities during the year as against cash outgo of $13,420 million in the last year. It has incurred net capital expenditure of $2,187 million on net basis during the year, down 6.22 percent or $145 million from year ago.
The company has spent $6,689 million cash to carry out financing activities during the year as against cash inflow of $5,006 million in the last year period.
Cash and cash equivalents stood at $3,371 million as on Dec. 31, 2016, up 37.09 percent or $912 million from $2,459 million on Dec. 31, 2015.
Debt remains almost stableTotal debt of CVS HEALTH Corporation remained almost stable for the quarter at $27,531 million, when compared with the last year period. Total debt was 29.15 percent of total assets as on Dec. 31, 2016, compared with 29.32 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.75 as on Dec. 31, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
