Q3: CVS Vs. Walgreens
CVS reported third-quarter earnings per share of $1.64, ahead of the $1.57 consensus estimate. Revenues came in at $44.6 billion, shy of the average analysts' estimate of $4.58 billion.
In comparison, Walgreens Boots Alliance Inc
Walgreens Boots Alliance
Guidance Downs CVS Amid Competitive Pressure
Adding to the worries arising out of the revenue miss, CVS lowered its full-year 2016 earnings per share guidance to $5.77–$5.81 from $5.81–$5.89 previously. The 2017 earnings per share guidance of $5.77–$5.83 also trailed the consensus estimate of $6.53.
However, rival Walgreens Boots Alliance expects 2017 earnings per share of $4.85 to $5.20, in line with the consensus estimate of $5.03.
Following its results announcement, the company's shares rose 1.04 percent to $87.30, but have since then lost 3.5 percent from the pre-earnings session.
As though compensating for the financial performance and outlook, CVS announced a $15 billion stock buyback program.
Is The Business Model Not Working?
Apparently, the company's strategy of an integrated business model hasn't cut much ice with customers. Apart from functioning as a pharmacy benefit manager, the company also operates a chain of retail store pharmacies.
Among the many reasons offered for the lackluster showing were market-wide slowdown in prescription growth, a change in the pharmacy network that led to some retail prescriptions moving out of its network and a clamp down on
In pre-market trading, shares of Walgreens Boots Alliance pulled back 4.24 percent to $78 and those of CVS is slumping 15.67 percent to $70.32.
At last check in late morning, Walgreens was down 2.21 percent at $79.65, and CVS was down 12.56 percent at $72.89.
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