CVS (CVS) 3Q17 Results: Beats on EPS, in Line on Revenues; Raises/Narrows FY17 EPS Guidance

Executive Summary

• CVS Health reported 3Q17 adjusted EPS of $1.50, down 9.9% year over year and beating the $1.48 consensus estimate. Revenues were $46.2 billion, up 3.5% year over year and in line with the consensus estimate.
• Pharmacy Services was the faster-growing segment, with revenues up 8.1% year over year, to $32.9 billion. Revenues in the Retail/LTC (Long-Term Care) segment declined by 2.7%, to $19.6 billion.
• The company narrowed and raised the midpoint of its FY17 adjusted EPS guidance to $5.87–$5.91 from $5.83–$5.93 previously.