CVS Health (CVS) Q3 Solid But Guidance Well Behind - Leerink

November 8, 2016 8:42 AM EST
Get Alerts CVS Hot Sheet
Price: $81.56 -1.97%

Rating Summary:
    21 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Leerink Partners analyst David Larsen weighed in on CVS Health (NYSE: CVS) following solid Q3 results but disappointing guidance which has the stock down 15.3%.

Larsen commented, "This morning CVS reported 3Q:16 earnings. While earnings in the quarter were solid, guidance was disappointing. Adjusted EPS of $1.64 came in ahead of Leerink/consensus of $1.55/$1.57, which includes a $0.05 tax benefit. While the quarter was good, 4Q:16 guidance of $1.64-$1.70 is below Leerink/consensus of $1.79/$1.75. CVS also provided preliminary 2017 adjusted EPS guidance of $5.77-$5.93, which is well below Leerink/consensus of $6.60/$6.50. The lower than expected outlook is due to changes in the retail networking landscape, and soft volumes in the industry. We will be listening on the call at 8:30 A.M. for greater detail around the impact of recent network contract changes."

The had an Outperform rating and price target of $105 into the results.

For an analyst ratings summary and ratings history on CVS Health click here. For more ratings news on CVS Health click here.

Shares of CVS Health closed at $83.39 yesterday.

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