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CVS Health Drops The Dividend Bombshell
Dec. 10, 2021 7:15 AM ETCVS Health Corporation (CVS)
Summary
CVS cut its shareholder returns a couple of years ago in order to pay for its acquisition of Aetna.
Deleveraging efforts have been successful, and CVS is now in a position where it can ramp up shareholder returns thanks to strong free cash flow.
Shares are inexpensive, offer a reasonable dividend yield, and the growth outlook for both the dividend and CVS' earnings per share is compelling.
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Piggy Bank,3d Render
Article Thesis
CVS Health Corporation (CVS) has focused on deleveraging for the last couple of years in order to clean up its balance sheet following the $69 billion takeover of Aetna. CVS has, thanks to strong cash flows, reduced its debt levels successfully in that time frame and is now in a position where it can start to reward its shareholders more aggressively. CVS announced an attractive 10% dividend increase, and also started a new buyback program worth $10 billion. Combined with solid business growth opportunities, this makes CVS an attractive investment.
Why CVS Had To End Its Dividend Growth Streak
CVS Health Corporation has had a solid dividend growth track record between 2000 and 2017:
CVS dividend
The company raised its dividend regularly, and at an attractive pace, on the back of solid business growth. Since 2017, however, the dividend has been held flat at a level of $0.50 per share per quarter, providing a dividend yield of around 2.2% at current prices -- this is still more than what one can get from the broad market, but without any dividend growth, CVS was not too attractive for dividend growth investors.
The reason for the halt of CVS' dividend growth path was its high debt load following the closing of the acquisition of Aetna in 2018. Management rightfully prioritized debt reduction over dividend increases and buybacks over the last couple of years in order to bring its leverage ratio back down to earth:
CVS liabilities
Source: CVS 10-Q
With $58 billion in short- and long-term debt, offset by $10 billion of cash, CVS had a net debt position of $48 billion at the end of the third quarter. This amount has declined by about $20 billion over the last couple of years. Debt levels still are higher than they were prior to the Aetna takeover, but that is not a disaster -- the company is now generating significantly higher profits and larger cash flows, which makes higher debt levels more sustainable. On a net debt to EBITDA basis, CVS is employing a reasonable amount of leverage:
CVS EBITDA estimates
Based on 2021 EBITDA estimates, current net debt to EBITDA stands at 2.5, while current net debt to EBITDA estimates for next year stands at 2.4. This does not yet account for the debt reduction, in absolute terms, that will likely take place during the current quarter and during next year, as CVS will still use at least some of its cash flows to bring down debt levels further, despite the recent dividend increase. With $3 billion in additional debt reduction in those five quarters, CVS' net debt to EBITDA ratio would drop to 2.3 by the end of 2022, whereas $5 billion in additional debt reduction over those five quarters would result in a 2022 net debt to EBITDA ratio of 2.2. Either way, it seems pretty clear that CVS is now at a point where its debt usage is not overly high, and where its balance sheet looks pretty reasonable.
In retrospect, I believe that CVS would actually have been able to keep its dividend growth track record intact -- with minimal raises of $0.01 per year in 2018-2021, CVS would still be a Dividend Contender, and deleveraging efforts would not have been hampered a lot, as the total dividend payout over those years would have been almost the same compared to what CVS had to pay out in reality. With several years of no dividend increases, the dividend growth track record was broken, of course, and CVS is no longer a Dividend Contender -- which means that becoming a Dividend Aristocrat is not possible in the foreseeable future.
Ramped Up Shareholder Returns
With its deleveraging efforts mostly completed, CVS Health is now in a position where it can finally increase cash returns to equity owners. CVS has announced to do this in two ways. First, the company will increase its dividend by 10% to $2.20 annually in early 2022, and on top of that, the company has announced a new $10 billion share repurchase program.
Looking at the dividend raise, it seems quite attractive to me -- if CVS Health were to keep that dividend growth rate in place, investors would get a combination of a yield slightly north of 2% and 10% annual dividend growth, which could position the company for 10%+ annual returns for as long as CVS is able to keep that growth rate in place.
Calculating a forward yield for when the new dividend is in place, we get to a yield of 2.4%, which is pretty attractive relative to the 1.3% dividend yield we can get from the S&P 500 right now -- CVS will be offering a yield that is almost twice as high as that of the broad market.
With dividends of $2.20 annually, CVS will still have a pretty conservative dividend payout ratio. Based on expected earnings per share of $8.10 next year, the midpoint of management's guidance of $8.00 to $8.20, CVS will pay out 27% of its profits in the form of dividends, which equates to a very strong dividend coverage ratio of 3.7.
Looking at CVS' dividend coverage on a cash flow basis, we again see that there is negligible risk of a dividend cut. Management is guiding for operating cash flows of $12.5 billion to $13.0 billion next year, which should translate into free cash flows of around $10 billion to $10.5 billion once we account for capital expenditures of around $2.5 billion (see CVS' latest 10-K filing). CVS will pay out around $3 billion in dividends next year, which makes for a dividend payout ratio of 30% or a little less than that. When we also account for the fact that CVS' management has a history of being conservative with guidance initially and raising it as the year passes, then actual dividend coverage could be even stronger in 2022 compared to what we can calculate based on current guidance metrics.
When it comes to CVS' buyback program, the wording in the announcement was a little confusing:
CVS capital deployment
Source: CVS announcement, linked above
The "used to at least offset share count dilution" part made some investors worry that CVS would use its shares to pay for an acquisition in 2022, but I don't believe that will be the case. It would, after all, not make a lot of sense to issue new shares just to buy them back, possibly at a higher price, during the same year. Also, CVS' hunger for acquisition doesn't seem to be too large right now from what I can see. Instead, I believe that the offsetting dilution phrase refers to shares being issued to employees and management -- those will be bought back in any case, and CVS might buy back additional shares under its new program. Management likely wants to be flexible with the pace of share repurchases and might deploy a larger amount to them if valuations remain attractive. Management might, however, also prefer to put more money towards further debt reduction instead of pushing all surplus free cash flow towards buybacks. I believe that this approach is reasonable, as the usefulness of buybacks does depend on valuations shares will trade at throughout 2022, of course.
Growth Opportunities And An Inexpensive Valuation
CVS Health has been able to grow its business reliably in the past, and the same should hold true for the future. There are several avenues for that. First, CVS has invested in integrating its businesses and in locking new customers into its ecosystem:
CVS new customers
Source: 2020 Annual Report
This was, for example, done through a massive COVID testing push that has resulted in millions of new customers that have now had their first contacts with CVS and that can now be turned into repeat customers. CVS' subscription program has a similar goal of increasing the loyalty of customers and of generating higher revenue from the existing customer base.
CVS is also increasing its capabilities in the chronic illnesses space, with focus areas being kidney diseases and diabetes:
CVS clinical programs
Source: 2020 Annual Report
CVS has millions of active customers already and is pushing to bring this service to additional customers in the coming years. Since those that require support in these areas do so for their entire lives, locking in one customer generates high lifetime revenue opportunities for CVS.
Digitalization is another focus area of CVS, with improved outreach, virtual care options (that can be less costly than in-house visits), and more consistent health monitoring being some of the measures CVS has been pushing.
Through these growth venues, combined with overall industry growth, CVS Health is expected to grow its revenue at a mid-single-digit rate over the coming years. With debt reduction leading to lower interest expenses, and with buybacks in future years leading to a declining share count, CVS should be able to grow its earnings per share at a higher rate, however. Analysts are forecasting growth of 8%-9% in 2023 to 2025, although I believe that actual growth might be higher, depending on how aggressive CVS will pursue buybacks once debt is at target levels -- with free cash flow of $10+ billion a year, CVS Health could buy back around 5%-7% of the float a year without too much hassle even after paying its dividend.
CVS Health does, despite this solid earnings per share growth outlook, only trade at 11.7x forward earnings, which does not seem expensive at all for a company that grows at a high-single-digit rate and that will offer reliable dividend growth in the coming years. I thus believe that CVS could be a solid longer-term dividend growth investment at current prices, especially since CVS is also suitable for risk-averse investors thanks to its recession-resilient business model.
Takeaway
CVS is a resilient company generating solid business growth, and its shareholder returns will likely rise considerably in the coming years. With the announced dividend increase possibly attracting new investors, I could see CVS Health rise in the coming months, as dividend growth investors might push into the stock that is still trading at pretty inexpensive valuations.
This article was written by
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Jonathan Weber
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Disclosure:
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Disclosure: I/we have a beneficial long position in the shares of CVS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
CVS Health (CVS) PT Raised to $115.00
By: MarketBeat | December 6, 2021
• CVS Health (NYSE:CVS) had its target price hoisted by equities researchers at Morgan Stanley from $114.00 to $115.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has an "overweight" rating on the pharmacy operator's stock. Morgan Stanley's price target would indicate a potential upside of 25.75% from the stock's current price...
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CVS Health sees fall in COVID-19 vaccine, testing revenue in 2022
By: Reuters | December 9, 2021
Drugstore operator CVS Health Corp (NYSE:CVS) said on Thursday it expects revenue from COVID-19 vaccination and testing to decline significantly next year, after it forecast 2022 adjusted earnings largely below estimates.
Shares of CVS, however, were up 3.8% at $96.7 after it raised its 2021 profit forecast to $8.00 per share from prior estimate of $7.90 to $8.00, with the company seeing higher-than-expected COVID-19 vaccine and testing sale volumes in the fourth quarter.
Pharmacy chains like CVS have benefited from distribution of COVID-19 vaccines and tests during the pandemic. CVS has so far administered 50 million vaccines and 29 million tests, which is expected to generate over $3 billion revenue in 2021.
CVS said it now assumes COVID-19 related revenue will decline 60%-70% next year, but added there were moving parts to the outlook given the uncertainty regarding new variants, booster doses and availability of oral antiviral medications and their impact on testing demand.
"You can make a bull case on vaccine and testing for next year based on what is happening and especially if we go into the mode of an annual booster kind of thing," Chief Financial Officer Shawn Guertin said at the company's Investor Day.
The company said it will revise this estimate once it has more data and clarity on policy.
The drugstore chain, which has seen its profit weighed down this year by higher medical costs in health insurer Aetna (NYSE:AET) due to the pandemic, expects COVID-19 to have a smaller impact on its insurance business next year.
CVS is still presuming COVID-19 will have a net negative impact next year, specifically in the Health Care Benefits segment, but will be significantly lesser than 2021, according to Guertin.
The company expects 2022 full-year adjusted profit between $8.10 and $8.30 per share, the midpoint of which was below analysts' estimates of $8.24.
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CVS Gains on Higher Dividend, $10-Billion Share Buyback
By: Investing.com | December 9, 2021
CVS Health stock (NYSE:CVS) traded 2.4% higher in Thursday’s premarket as the company promised to return more money to shareholders through higher dividends and a $10 billion buyback.
The pharmacy chain also said it will meet the top end -- $290.3 billion -- of its current-year revenue estimates at the very least. Similarly, it expects to hit the high end of the adjusted EPS guidance too ($8) for the year while it held out hope of exceeding it.
The company is holding its 2021 Investor Day today and issued a statement ahead of it. CVS’s optimistic outlook comes amid a record period for the chain and its rivals including Walgreens (NASDAQ:WBA), all of whom have benefited from the Covid-19 fallout and concerns around health arising out of the pandemic.
The company also initiated guidance for the next year, projecting revenue of around $309 billion.
It guided for adjusted earnings per share of $8.20 at midpoint of the range for the next financial year.
As part of its long-term growth trajectory, CVS is targeting a return to low double-digit adjusted EPS growth in 2024.
The company said it will increase its yearly dividend by 10% to $2.20, effective with the next dividend distribution on February 1.
Last month, the company said it will shut 900 stores over three years under its plan to shift to digital.
The company plans to turn some of its pharmacies into units that offer a range of medical services, from administering shots to conducting tests.
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CVS Health announces $1.74 million commitment to maternal health as part of Biden-Harris Maternal Health Call to Action Day
Tuesday, December 7, 2021
Investment will help further address maternal health disparities nationwide
WOONSOCKET, R.I. — CVS Health® (NYSE: CVS) has announced as part of today’s Biden-Harris Maternal Health Call to Action Day it is advancing its commitment to addressing maternal health disparities with a $1.74M investment. The funding will support initiatives led by America’s Essential Hospitals, Every Mother Counts and the National Association of Free & Charitable Clinics.
According to the Centers for Disease Control and Prevention, Black women in the U.S. are three times more likely to die due to pregnancy-related causes compared to white women. Overall, the U.S. has the highest maternal mortality rate among developed countries; 60 percent of those deaths are likely preventable.
“We have an unwavering commitment to addressing the maternal health crisis that our country is facing – one of which disproportionally impacts Black women,” said Joneigh Khaldun, MD, MPH, Chief Health Equity Officer, CVS Health. “We fully support the Administration’s efforts to address racial inequities in pregnancy and childbirth and to improve maternal health outcomes. We will continue to do our part by investing in community-based programs that help reduce maternal mortality so that all birthing people receive the high quality care they need and deserve.”
CVS Health’s $1.74M commitment to maternal health will support the following initiatives:
• Every Mother Counts: “Choices in Childbirth” ($650,000)
A series of educational videos and resources that will empower expecting parents through their maternal care journey with the goal to improve maternal health and birth equity in the United States. The materials will become available on January 1, 2022.
• America’s Essential Hospitals: “Improving Obstetric Outcomes for Black Maternity Patients in Essential Hospitals” ($847,000 grant from the CVS Health Foundation)
A new learning collaboration by America’s Essential Hospitals to reduce morbidity and mortality for women and improve their obstetric outcomes. It will include 12 hospitals across the country that have maternal mortality rates above the national average, especially among Black patients. The learning collaboration will launch in January 2022.
• National Association of Free & Charitable Clinics: Preeclampsia Prevention Initiative for Black Women ($250,000 grant from the CVS Health Foundation)
A program implemented in nine clinics across the country that provides educational and clinical training for providers to help identify women at risk for preeclampsia, high blood pressure that comes on suddenly during pregnancy. Preeclampsia, which is 60 percent more common in Black women vs. white women, is a leading, preventable cause of severe maternal morbidity, maternal death, preterm birth, and low birthweight. CVS Health began donating low-dose aspirin, an intervention recommended by medical societies that can reduce the risk of preeclampsia by more than 30 percent, for women at these clinics in July 2021.
As part of its commitment to addressing maternal health disparities, CVS Health is also donating 1,000 blood pressure monitoring machines to health care systems in counties that have some of the highest maternal mortality and morbidity numbers in the country. This donation is expected to impact 10,000 mothers each year that the new machines are in use.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Eva Pereira
781-686-4200
Eva.Pereira@CVSHealth.com
CVS Health (CVS) Given Buy Rating at Seaport Res Ptn
By: MarketBeat | December 3, 2021
• CVS Health (NYSE:CVS)'s stock had its "buy" rating reaffirmed by stock analysts at Seaport Res Ptn in a report released on Wednesday, Zacks.com reports. Seaport Res Ptn also issued estimates for CVS Health's Q4 2021 earnings at $1.57 EPS, FY2021 earnings at $8.00 EPS, Q1 2022 earnings at $2.15 EPS, Q2 2022 earnings at $2.26 EPS, Q3 2022 earnings at $2.07 EPS, Q4 2022 earnings at $1.75 EPS, FY2022 earnings at $8.25 EPS, Q1 2023 earnings at $2.36 EPS, Q2 2023 earnings at $2.46 EPS, Q3 2023 earnings at $2.27 EPS and FY2023 earnings at $9.00 EPS...
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CVS Health and Microsoft announce new strategic alliance to reimagine personalized care and accelerate digital transformation
Thursday, December 2, 2021
WOONSOCKET, R.I. and REDMOND, Wash. — CVS Health (NYSE: CVS) and Microsoft Corp. (NYSE: MSFT) today announced a new strategic alliance focused on developing innovative solutions to help consumers improve their health, while empowering over 300,000 CVS Health employees including frontline workers with tools to better serve more than 100 million people.
Since the start of the COVID-19 pandemic, organizations in every industry health care in particular have grappled with the need to adapt quickly. According to an Economist Intelligence Unit study commissioned by Microsoft, organizations have accelerated transformation initiatives and have begun to rely more heavily on digital tools. From creating hybrid environments to help employees work from home virtually, to deploying new applications to better support frontline workers, digital transformation has become a fundamental necessity for business resilience, accelerating growth, and driving efficiencies.
"We are rapidly transforming into a consumer-centric, integrated health solutions company, taking a digital-first, technology forward approach to all that we do," said Roshan Navagamuwa, Chief Information Officer, CVS Health. "Business services at this scale requires a new level of partnership. Our collaboration with Microsoft will accelerate this work and empower our employees to provide quality care that is more personal and affordable."
Customized care
The collaboration with Microsoft will help CVS Health accelerate a data-driven, personalized customer experience, while complying with the company's patient privacy and confidentiality policies. By combining information from different areas across the company with high agility, CVS Health will enhance its omnichannel pharmacy capabilities and deliver customized health recommendations when and where consumers need them. CVS Health will also scale up retail loyalty and personalization programs that use advanced Machine Learning models running on the cloud computing service Azure.
In addition to creating a more personalized and seamless experience for consumers, data science will also be used to improve access to care and health outcomes. The ability to create a simple, easy-to-use patient experience has been critical to CVS Health's role in the national COVID-19 vaccination effort, delivering insights and recommendations to ensure equitable and efficient administration of approximately 43 million vaccines.
Enabling frontline workers
Throughout the pandemic, CVS Health retail employees have continued to support their communities by staying focused on their day-to-day responsibilities. Through the use of Microsoft Teams and Office products, CVS Health will be more agile, enabling retail employees to more easily consume key information needed to answer common questions and solve customer needs faster.
Digitalizing operations
CVS Health currently leverages Azure cognitive services like Computer Vision and Text Analytics for Health that automate tasks. In Specialty Pharmacy, for example, CVS Health has digitized intake using these services including the 40 percent of prescriptions that arrive as paper or fax helping technicians fill prescriptions, faster and easier than previous methods. Microsoft will continue to expand and partner with CVS Health to reimagine and simplify processes, as part of CVS Health's technology-driven digitalization program.
Expanding cloud services
CVS Health selected Microsoft as a preferred cloud provider for applications based on a successful history of engineering and co-innovation. As a strategic platform, Azure will play a key role in CVS Health's acceleration of its digital transformation by expanding the company's already formidable multi-cloud presence to over 1,500 new and existing business applications in Azure cloud.
Innovative solutions
Microsoft and CVS Health will also explore innovative technology solutions that will support consumers, employees, and ecosystem partners. Microsoft HoloLens, Dynamics 365 Guides, and Remote Assist can simplify complex procedures with intuitive tools to help support CVS Health employees. Microsoft Azure AI and cognitive capabilities can also extend to automate administrative and predictive processes and reduce waste through co-innovation with CVS Health's deep community presence and health care expertise.
"We are excited to partner with CVS Health on its digital transformation journey, collaborating together on how the company manages health data at scale, improves the customer experience, and drives operational efficiency," said Judson Althoff, Microsoft's Chief Commercial Officer. "With the Azure platform and its AI capabilities, we will combine the power of data, the expansive reach of CVS Health's world-class solutions, and Microsoft Teams to connect health care experts and create customized care and services that enable people to live healthier lives."
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues - including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health - whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system - and their personal health care - by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
About Microsoft
Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
For more information, press only:
Microsoft Media Relations
WE Communications for Microsoft
425-638-7777
rapidresponse@we-worldwide.com
CVS Media Relations
Ethan Slavin
860-273-6095
Ethan.Slavin@cvshealth.com
CVS Health Co. (CVS) Given Average Rating of "Buy" by Brokerages
By: MarketBeat | November 26, 2021
• Shares of CVS Health Co. (NYSE:CVS) have been assigned an average rating of "Buy" from the nineteen research firms that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a hold recommendation, thirteen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $104.11...
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CVS, other pharmacy chains found liable in their first trial over U.S. opioid epidemic
By: Nate Raymond | November 23, 2021
A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp (NYSE:CVS), Walgreens Boots Alliance (NASDAQ:WBA) Inc and Walmart (NYSE:WMT) Inc helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis.
Jurors in Cleveland federal court concluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market.
The verdict was confirmed by lawyers for the plaintiffs. The jury only assessed liability. It is up to U.S. District Judge Dan Polster to decide how much the companies should owe to abate, or address, the public nuisance in Ohio's Lake and Trumbull counties.
He has tentatively scheduled a trial on that question for May 9. The counties' lawyers have said the costs are potentially $1 billion for each county.
The trial was the first that any pharmacies had faced over an epidemic that U.S. health officials say had by 2019 resulted in nearly 500,000 opioid overdose deaths over the course of two decades.
Over 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention on Wednesday said, a record high driven in large part by deaths from opioids like fentanyl.[L1N2S81LI]
At trial, lawyers for Lake and Trumbull counties argued that the pharmacies failed to ensure opioid prescriptions were valid and allowed excessive quantities of addictive pain pills to flood their communities.
The pharmacy operators, among the largest in the United States, denied the allegations. They said they took steps to guard against the diversion of pills and blamed others, including doctors, regulators and drug traffickers, for the epidemic.
The verdict in the Ohio trial followed recent setbacks for plaintiffs pursuing some of the other 3,300 opioid cases filed against drug manufacturers, distributors and pharmacies nationally.
Oklahoma's top court on Nov. 9 overturned a $465 million judgment against drugmaker Johnson & Johnson (NYSE:JNJ), and a California judge this month ruled in favor of four drugmakers in a case brought by several large counties.
Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries (NYSE:TEVA) Ltd and AbbVie Inc (NYSE:ABBV), and in Washington state with the three largest U.S. drug distributors.
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CVS Health Completes Rollout of Time Delay Safes in All 851 Texas Pharmacies
https://cvshealth.com/news-and-insights/press-releases/cvs-health-completes-rollout-of-time-delay-safes-in-all-851-texas
A woman enters a CVS Pharmacy location. A Sign on the door reads "Warning: Time-Delay Pharmacy Safes In Use. Monitored by 24-Hour Surveillance. Emergency Alarm Systems. For Safety And Security. CVS Pharmacy"
Tuesday, November 23, 2021
New safes for controlled substances anticipated to help reduce robbery incidents
The company previously implemented time delay safe technology in all 223 CVS Pharmacy locations in Houston
WOONSOCKET, R.I. — As part of an ongoing commitment to helping build healthier and safer communities, CVS Health® (NYSE: CVS) today announced the completed installation of time delay safe technology in all 851 CVS Pharmacy locations, including those in Target stores, across Texas. The company implemented the new safes initially in September at all 223 CVS Pharmacy locations in Houston.
The safes are anticipated to help prevent pharmacy robberies and the potential for associated diversion of controlled substance medications — including opioid medications such as oxycodone and hydrocodone — by electronically delaying the time it takes for pharmacy employees to open the safe. In addition, the safes are anticipated to benefit the safety and well-being of CVS Pharmacy customers and employees.
CVS Health first implemented time delay safe technology in 2015 in CVS Pharmacy locations across Indianapolis, a city experiencing a high volume of pharmacy robberies at the time. The company saw a 70% decline in pharmacy robberies among the Indianapolis stores where time delay safes had been installed.
Since then, the company has introduced time delay safes across 19 states and the District of Columbia, resulting in a 50% decline in robberies at CVS pharmacies in those local communities.
“While our company continues to focus on moving the country one step closer to a post-pandemic world by increasing access to COVID-19 vaccines, testing and other measures to help create healthy communities, the misuse of prescription drugs also remains a focus,” said Tom Moriarty, Chief Policy Officer and General Counsel, CVS Health. “Time delay safes can help reduce the theft and diversion of opioid medications and bring added security to our stores which creates a safe environment for our patients and colleagues.”
The time delay function cannot be overridden and is designed to serve as a deterrent to would-be pharmacy robbers whose goal is to enter and exit their robbery targets as quickly as possible. All CVS Pharmacy locations across Texas with time delay safes display visible signage warning that time delay safes are in use to prevent on-demand access to controlled substance narcotics.
CVS Health’s time delay safe program is one of many company initiatives to help address and prevent prescription opioid misuse and diversion. Through its Safe Medication Disposal Program in Texas, for example, the company has installed 252 drug disposal units in select CVS Pharmacy locations and donated 69 units to local police departments in the state. To date, approximately 250,000 pounds of unwanted and expired medication have been collected in Texas.
Presently, the company supports over 4,000 safe medication disposal units in CVS Pharmacy locations and through local law enforcement organizations nationwide. Together, these existing medication disposal units have collected more than 3 million pounds of unwanted medications that might otherwise have been diverted, misused or ended up in the water supply.
Additionally, CVS Pharmacy locations that do not offer a safe medication disposal kiosk offer DisposeRx® packets at no cost to patients filling an opioid prescription for the first time. According to the manufacturer, when warm water and the DisposeRx powder are added to a container, the combination breaks down medications — including powders, pills, capsules, tablets, liquids or patches — to a non-divertible biodegradable gel, allowing for safe disposal in the trash at home.
CVS Health’s commitment to helping prevent and address drug misuse and diversion also extends to community education and increasing access to the opioid overdose-reversal drug naloxone.
Our Pharmacists Teach Program connects volunteer CVS pharmacists with local students to encourage conversation and teach youth about the dangers of prescription drug misuse.
Since 2015, our pharmacists have volunteered their time and delivered curriculum to more than 600,000 teens and parents across the country. We’ve partnered with Discovery Education to expand the reach of Pharmacists Teach into more classrooms with a no-cost digital prevention program called Dose of Knowledge. This program provides standards-aligned resources to educators and pharmacists across the U.S. and strives to empower educators and pharmacists to address substance misuse and educate students to make good decisions for the health and well-being of themselves and their community. The Pharmacists Teach Program together with Dose of Knowledge have impacted more than 1.2 million lives.
Finally, CVS Pharmacy patients can now access the opioid overdose-reversal drug naloxone without an individual prescription at every CVS Pharmacy location nationwide, including all 50 states, Washington, D.C., and Puerto Rico. CVS Health has also worked with Google to help people locate naloxone at CVS Pharmacy and other locations in their community using Google’s locator tool.
With its national reach and local presence, CVS Health has been working hard to help address opioid misuse and diversion with an enterprise-wide approach. To learn more about CVS Health’s efforts, visit the company’s Opioid Response website.
For downloadable time delay safe photos, please visit the Media Resource Center.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Monica Prinzing
831-241-8294
Monica.Prinzing@CVSHealth.com
CVS Health to Invest $7.7 Million in Affordable Housing in Tampa
Monday, November 22, 2021
https://cvshealth.com/news-and-insights/press-releases/cvs-health-to-invest-77-million-in-affordable-housing-in-tampa
WOONSOCKET, R.I. /PRNewswire/ — CVS Health® (NYSE: CVS) announced it will invest $7.7 million with Raymond James Tax Credits Funds to build a 61-unit multifamily apartment home development called Uptown Sky for families in Tampa. This investment is part of the company’s commitment to address racial inequity and social determinants of health in underserved communities.
“When people have access to high-quality, affordable housing, it puts them in a better position to take care of their health and manage chronic disease,” said David Casey, SVP and Chief Diversity Officer, CVS Health. “As part of our commitment to address social justice and racial inequity, we're addressing social determinants of health at the community level in Tampa, which is where we can make a meaningful and lasting impact.”
The new Uptown Sky development will be located at 13603 North 12th Street in Tampa. Data compiled from the Census indicates that approximately 75% of residents identify as Black or Latino, and 60% live below the poverty line. Additionally, according to a recent report from the National Low-Income Housing Coalition, nearly half of American workers don’t earn enough to afford a one-bedroom apartment, and Tampa is reaching its highest rates to date, with rent increasing more than 20% in the last year.
CVS Health is working with co-developers Blue Sky Communities and University Area Community Development Corporation, a Tampa-area nonprofit, to develop Uptown Sky and provide comprehensive support to residents. Blue Sky Communities is a leading advocate for helping nonprofits and local governments reach their affordable housing goals by developing state of the art, environmentally-sound affordable housing units. University Area Community Development Corporation is focused on championing positive change in the economic, educational and social levels of the Tampa community through youth programs, adult education, affordable housing, workforce and resource assistance, and community engagement.
“This investment by CVS Health provides a vital link between big business and urban redevelopment,” said Shawn Wilson, President of Blue Sky Communities. “Many organizations recognize the impact that quality affordable housing and access to health care have on someone’s health and well-being, but it takes the financial commitment of partners like CVS Health and Aetna to help provide those services to communities in need.”
Uptown Sky will provide two and three-bedroom housing units at a reduced rent to families with demonstrated need. Additionally, all residents will have access to on-site supportive services in the neighborhood center located on the bottom floor of the building. It will serve as a hub for residents and will offer computer training, homeownership programs, workforce training and financial management programs. It will also include a multi-purpose classroom where individuals will have access to classes to encourage healthy habits, including art, dance, yoga and karate.
“We know that housing insecurity can have a major impact on a person’s health and well-being,” said Richard Weiss, President of the Florida Market for Aetna, a CVS Health company. “Our investment in the Florida community will ensure that individuals and families have access to quality, affordable housing.”
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Eva Pereira
781-686-4200
Eva.Pereira@CVSHealth.com
What CVS' Major Store Closures Mean for Retail
By: Motley Fool | November 21, 2021
• At a time when so many people are reliant on pharmacies, this reads like a surprise move.
Key Points
• CVS will be shuttering 900 locations over the next three years.
• That's not necessarily bad news for shareholders, but it could be a reason for real estate investors to worry.
At first glance, it would appear as though CVS (NYSE:CVS) is having a pretty good year. The pharmacy chain's stock price is up roughly 41% from a year ago, and recently, it enjoyed better-than-expected revenue as per its quarterly earnings report.
While the COVID-19 pandemic may have hammered retailers across the board, CVS emerged as an essential stop for testing as well as vaccines. That's undoubtedly driven a lot of foot traffic to CVS stores this year and helped the pharmacy giant -- and its shareholders -- enjoy a solid third quarter.
But despite its success, CVS is actually planning to close a large number of its stores. And that could be pretty bad news for real estate investors.
Narrowing its footprint
In the next three years, CVS has plans to shutter 900 stores, roughly 10% of its total footprint. And given that CVS has made a name for itself as a vaccine hub, that's somewhat surprising.
On the other hand, in many markets, CVS stores have the potential to compete with each other. And so part of the company's recent strategy involves shuttering locations to avoid too much overlap.
But there's another reason the company is seeking to close stores. Some CVS pharmacies are in such bad shape that shutting them down may read like an easier, more cost-effective alternative to renovating them.
Should real estate investors be worried?
CVS shareholders should be breathing easy after the company's most recent earnings report. But real estate investors may be less than thrilled with the idea of CVS closures.
CVS commonly serves as a shopping center anchor, drawing in consumers and enticing other tenants to sign leases to benefit from proximity to a well-known brand. If too many CVS stores shutter, commercial landlords could be left with a string of vacancies to fill. And seeing as how many shopping centers are still grappling with vacancies in the wake of the pandemic, that's not a good thing.
The silver lining, though, is that while CVS may be shuttering some less desirable and underperforming locations, it recently launched its first virtual primary care service. That could drive more people into its remaining stores as patients follow up on the care they receive online.
CVS also plans to remodel some of its existing stores to include more health-service offerings. And if it does a great job of getting people in the door, it could seek to expand its footprint once it sees which services seem to be gaining the most traction.
Finally, like it or not, COVID-19 booster shots could become an annual event, similar to how flu vaccines are administered yearly. And that, too, is apt to help CVS maintain a steady flow of foot traffic, thereby helping to ensure that its remaining locations stay relevant. In fact, the shopping center vacancy crisis could end up somewhat resolving itself if CVS sees enough volume to warrant expanding some of its existing stores and taking over the space other tenants don't seem to want.
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CVS Health (CVS) Issues FY 2021 Earnings Guidance
By: MarketBeat | November 18, 2021
• CVS Health (NYSE:CVS) updated its FY 2021 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of $7.900-$8.000 for the period, compared to the Thomson Reuters consensus estimate of $7.980. The company issued revenue guidance of -.CVS Health also updated its FY21 guidance to $7.90-8.00 EPS...
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CVS Health announces steps to accelerate omnichannel health strategy
Thursday, November 18, 2021
Prem Shah to become company's first Chief Pharmacy Officer
Shah and Michelle Peluso named Co-Presidents of retail business effective January 1, 2022
New retail footprint strategy aligned to evolving consumer needs
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced several steps to support its strategy of making health care more affordable, accessible and convenient for consumers.
Prem Shah has been named to the newly created role of Chief Pharmacy Officer and will oversee the omnichannel pharmacy strategy, effective immediately. On January 1, 2022, Shah and Michelle Peluso will become Co-Presidents of CVS Health's retail business, with Peluso overseeing front-store strategy and operations. Shah joined CVS Health in 2013 and is currently Executive Vice President, Specialty Pharmacy and Product Innovation. Peluso joined CVS Health in 2021 as Executive Vice President and Chief Customer Officer.
"Prem and Michelle are ideally suited for their new roles and will be instrumental to CVS Health as we continue to execute against our strategy of delivering an integrated health care experience centered around the consumer," said Karen S. Lynch, President and CEO of CVS Health.
Shah will report directly to Lynch in his new role, and Peluso will continue to report directly to Lynch.
In connection with the changes announced today, Neela Montgomery, currently Executive Vice President and President, CVS Retail/Pharmacy, has decided to leave the company. Montgomery will remain in her role until the end of 2021, ensuring a smooth transition of responsibilities.
Lynch added, "We appreciate Neela's contributions during an incredibly challenging and dynamic period when our retail stores played a critical role in the country's fight against COVID-19. We value the leadership she has provided during a time of evolution in our business and wish her continued success."
As part of the company's strategic review of its retail business, CVS Health will also create new store formats to drive higher engagement with consumers. Three distinct models will serve as community health destinations:
• Sites dedicated to offering primary care services;
• An enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs; and
• Traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care and other convenient retail offerings.
The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business. As part of this initiative, CVS Health will reduce store density in certain locations and close approximately 300 stores a year for the next three years. The company is committed to offering impacted colleagues roles in other locations or different opportunities as part of its overall workforce strategy. These changes will begin in the spring of 2022.
"Our retail stores are fundamental to our strategy and who we are as a company," said Lynch. "We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence."
In connection with the planned store closures, the company expects to record an impairment charge in the fourth quarter of 2021 of between $1.0 billion and $1.2 billion or between $0.56 and $0.67 of diluted earnings per share related to the write down of operating lease right-of-use assets and property and equipment. As a result of the planned store closures, the company has revised its full year 2021 GAAP EPS guidance range to $5.46 to $5.67 from $6.13 to $6.23. These impairment charges are excluded from the company's calculation of Adjusted EPS. The company expects the impact to Adjusted EPS to be immaterial in 2021 and 2022, and modestly accretive in 2023 and thereafter. The company confirms its full year 2021 Adjusted EPS guidance range of $7.90 to $8.00 and confirms its full year 2021 cash flow from operations guidance range of $13.0 billion to $13.5 billion.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Cautionary Statement Concerning Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include references to CVS Health Corporation's omnichannel pharmacy strategy leadership changes in its retail segment, changes to its retail footprint and its full year 2021 guidance, including the information included in the reconciliations. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021.
You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.
Non-GAAP Measures
The press release includes Adjusted EPS, a non-GAAP financial measure that the company uses to describe its performance. The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance. Non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.
Adjusted EPS is calculated by dividing adjusted income attributable to CVS Health by the Company's weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, store impairments, goodwill impairments, acquisition purchase price adjustments outside of the acquisition accounting measurement period, gains/losses on divestitures, losses on early extinguishment of debt and the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. The adjustments between GAAP diluted EPS and Adjusted EPS include, as applicable, adding back amortization of intangible assets, integration costs related to the Company's acquisition of Aetna Inc., the LTC goodwill impairment, an acquisition purchase price adjustment outside of the acquisition accounting measurement period, a loss on early extinguishment of debt and the store impairments described in this press release.
The following reconciliations of projected net income attributable to CVS Health to projected adjusted income attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our SEC filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021.
Year Ending December 31, 2021
Read the financials here:
https://cvshealth.com/news-and-insights/press-releases/cvs-health-announces-steps-to-accelerate-omnichannel-health
CVS Health (CVS) Price Target Raised to $105.00 at Mizuho
By: MarketBeat | November 10, 2021
• CVS Health (NYSE:CVS) had its price target hoisted by equities research analysts at Mizuho from $98.00 to $105.00 in a research report issued to clients and investors on Wednesday, The Fly reports. The brokerage presently has a "buy" rating on the pharmacy operator's stock. Mizuho's target price would indicate a potential upside of 13.20% from the stock's current price...
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Two Aetna Medicare plans in Maine awarded 5-Star rating
https://cvshealth.com/news-and-insights/press-releases/two-aetna-medicare-plans-in-maine-awarded-5-star-rating
Thursday, November 11, 2021
Plans help provide access to high-quality care for members across Maine
WOONSOCKET, R.I. — Aetna®, a CVS Health® company (NYSE: CVS), today announced that two of its 2022 Medicare Advantage Prescription Drug (MAPD) plans serving Maine, its HMO plan and its Dual Eligible Special Needs (D-SNP) plan, have been awarded 5 stars out of 5 by the Centers for Medicare & Medicaid Services (CMS). Both the Aetna Medicare Value Plan HMO and the Aetna Medicare Assure Plan (HMO-PPO D-SNP) are offered statewide.
The CMS Medicare Star Ratings rank the performance and quality of Medicare Advantage and Medicare prescription drug plans to help beneficiaries and their families compare plans.
“Our strong Star Ratings demonstrate our commitment to providing quality care and value for Medicare beneficiaries across Maine. We’ve developed integrated and close relationships with providers and hospitals statewide,” said Dan Dyer, chief Medicare officer for the Aetna Maine market. “And our Maine members allowed our dedicated team and our providers to serve them in this challenging COVID-19 environment. We take seriously our responsibility to care for our fellow Maine citizens and members by taking the complexity out of health care. We also work closely with our providers, enhance care coordination and patient satisfaction, and create simple, easy-to-use products and benefits.”
Medicare Advantage plans are rated on how well they perform in five different categories:
Staying healthy
Managing chronic (long-term) conditions
Member experience with the health plan
Member complaints
Health plan customer service
MAPD plans are also rated on how well they perform in three additional categories:
Drug plan customer service
Member experience with drug plan
Drug safety
Aetna Medicare Advantage and prescription drug plans are available to Medicare beneficiaries for selection during the Annual Enrollment Period, which started on October 15, 2021, and runs through December 7, 2021. Enrollment becomes effective on January 1, 2022.
The Star Ratings are posted at Medicare.gov. Visit AetnaMedicare.com to learn more about the 2022 Aetna Medicare plans. Or call 1-844-588-0041 (TTY: 711), 7 days a week, 8 AM to 8 PM. A licensed agent may answer your call.
NOTE: Information in this release is based on 2022 Star Ratings data published by CMS on October 8, 2021, and Medicare Advantage and Medicare prescription drug plan enrollment as of September 2021.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
About Aetna
Aetna, a CVS Health business, serves an estimated 34 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, visit www.aetna.com and explore how Aetna is helping to build a healthier world.
Aetna Medicare is a HMO, PPO plan with a Medicare contract. Our SNPs also have contracts with State Medicaid programs. Enrollment in our plans depends on contract renewal. See Evidence of Coverage for a complete description of plan benefits, exclusions, limitations and conditions of coverage. Plan features and availability may vary by service area.
SilverScript is a Prescription Drug Plan with a Medicare contract marketed through Aetna Medicare. Enrollment in SilverScript depends on contract renewal. Every year, Medicare evaluates plans based on a 5-star rating system. ©2021 Aetna Inc.
Media contact
Joe Goode
401-378-5220
Joseph.Goode@CVSHealth.com
Investor contact
Katie Durant
401-770-6442
Katherine.Durant@CVSHealth.com
CVS: Coronavirus Testing, Vaccinations Likely To Keep Boosting Shares
By: Geoff Considine | November 10, 2021
CVS Health Corp's (NYSE:CVS) Q3 EPS, reported on Nov. 3, beat consensus expectations by almost 11%. Since closing at the YTD high of $96.34 on that day, the shares have fallen slightly.
CVS has benefited substantially from COVID testing and vaccinations and it expects increased COVID-related earnings to continue as customers seek booster shots.
CVS 12-Month Price History
Source: Investing.com
CVS is providing an ever-wider swathe of healthcare products and services, combining bricks-and-mortar clinics and stores with online tools. According to Trefis.com, the net present value of projected future earnings per share from each of three major divisions is $54.59 from retail pharmacy, $54.41 from health care services, and $40.37 from pharmacy services. Trefis calculates the fair value of the shares to be $99.31.
Contributors To CVS Share Price
Source: Trefis.com
Looking at longer-term trailing returns, one appreciates how exceptional the past year has been. The trailing 12-month total return for CVS is 55.97% and the YTD total return is 40.23%. Even with the huge gains in the past 12 months, the 3-year annualized return is 10.6% per year and the 5-year annualized return is 4.74% per year.
are Plans industry And US Equity Market Index
Source: Morningstar
CVS has consistently beaten expectations for quarterly earnings in recent years. The consensus outlook for EPS growth over the next 3-5 years is 5.99% per year.
CVS Trailing And Consensus Expected Quarterly EPS
Source: E-Trade. Green values are amount by which reported EPS exceeded the consensus expected value.
CVS has a forward dividend yield of 2.1%. Dividend growth in recent years has slowed substantially, as the company prioritizes bolstering the balance sheet (see Slide 8 in the linked presentation). The trailing 3-, 5-, and 10-year dividend growth rates are 0%, 3.3%, and 14.9%, respectively. The lack of consistent dividend growth makes CVS relatively unattractive to income investors.
I last wrote about CVS on Apr. 11. At that time, the Wall Street consensus rating was bullish, with a 12-month price target that was about 19% above the share price at that time. A concern in April was that the options markets suggested a bearish outlook for CVS (explained in the next paragraph). I compromised on a neutral outlook for CVS. In the seven months since, CVS has rallied, substantially outperforming the broader U.S. stock market.
The price of an option on a stock reflects the market’s consensus estimate of the probability that the share price will rise above (call option) or fall below (put option) a specific level (the strike price) between now and when the option expires. By analyzing the prices of call and put options at a range of strike prices and the same expiration date, it is possible to calculate a probabilistic price return forecast that reconciles the options prices. This is called the market-implied outlook and represents the consensus of buyers and sellers of options. In April, the market-implied outlook for CVS to early 2022 was bearish, indicating elevated probabilities of price declines.
With about 7 months since my last analysis, over which CVS has reported 3 quarters of EPS exceeding expectations by double-digit percentages and a substantial gain in the share price, I have updated the market-implied outlook for CVS and the comparison with the Wall Street consensus outlook.
Wall Street Consensus Outlook for CVS
E-Trade calculates the Wall Street consensus outlook using ratings and price targets from 15 ranked analysts who have published their views over the past 90 days. The consensus rating for CVS is bullish and the consensus price target is 15.37% above the current share price. Of the 15 analysts, 13 assign a buy rating and 2 are neutral. The Wall Street consensus has been continuously bullish over the past year.
CVS Analyst Consensus Rating And 12-Month Price Target
Source: E-Trade
Investing.com calculates the Wall Street consensus outlook from the views of 29 analysts. The consensus rating is bullish and the consensus 12-month price target is 9.1% above the current price.
CVS Analyst Consensus Rating And 12-Month Price Target
Source: Investing.com
While there is a notable difference in the 12-month consensus price targets, E-Trade and Investing.com agree that the consensus rating for CVS is bullish. The average of E-Trade’s and Investing.com’s 12-month price targets is 12.25%. Combined with the 2.1% dividend yield, the consensus for expected total return is 14.35%. This expected return is well above the annualized returns over the past 3-, 5-, 10-, and 15-year periods.
Market-Implied Outlook for CVS
I have analyzed the prices of call and put options at a range of strike prices, all expiring on Jan. 21, 2022, to generate the market-implied outlook for CVS for the next 2.4 months (from now until that expiration date). I have also analyzed options expiring on June 17, 2022 to calculate the market-implied outlook for the next 7.2 months.
The standard presentation of the market-implied outlook is in the form of a probability distribution of price return, with probability on the vertical axis and return on the horizontal.
CVS Market-Implied Price Return Probabilities From Now Until Jan. 21, 2022
Source: Author’s calculations using options quotes from E-Trade
The market-implied outlook for CVS for the next 2.4 months is generally symmetric, without a well-defined peak in probability tilted to either positive or negative returns. The annualized volatility calculated from this distribution is 25.5%.
To make it easier to directly compare the relative probabilities of positive and negative returns, I rotate the negative return side of the distribution about the vertical axis (see chart below).
CVS Market-Implied Price Return Probabilities From Now Until Jan. 21, 2022
Source: Author’s calculations using options quotes from E-Trade. The negative return side of the distribution has been rotated about the vertical axis.
This view shows that the probabilities of positive and negative returns of the same magnitude are almost identical for most outcomes (the solid blue line and the dashed red line are very close to one another), although there are slightly-elevated probabilities of small-magnitude negative returns for this period.
Theory suggests that the market-implied outlook is expected to have a negative bias because investors, in aggregate, are risk averse and thus tend to overpay for put options. Considering this bias, having such similar market-implied probabilities of positive and negative returns is interpreted to be neutral to slightly bullish.
The market-implied outlook to June 17, 2022 is very similar to the 2.4-month outlook, with comparable probabilities of positive and negative returns of the same magnitude. The annualized volatility calculated from this outlook is 27.3%. This market-implied outlook is neutral to slightly bullish.
CVS Market-Implied Price Return Probabilities From Now Until June 17, 2022
Source: Author’s calculations using options quotes from E-Trade. The negative return side of the distribution has been rotated about the vertical axis.
The current market-implied outlooks for CVS to early and mid 2022 are neutral with a slight bullish tilt and expected annualized volatility of around 26.5%. Back in April, the market-implied outlook to early 2022 was bearish, with a pronounced tilt in probabilities favoring negative returns. The options market outlook for CVS has improved substantially.
Summary
CVS is competing in a rapidly-changing health services business by providing insurance, clinics, and maintaining a pharmacy.
COVID-19 provided a boost to earnings that will continue for some period of time.
The Wall Street consensus rating continues to be bullish and the consensus 12-month outlook is for expected total return of about 14.4%. As a rule of thumb for a buy rating, I want to see an expected 12-month return that is at least half the expected volatility.
With the expected volatility of about 26.5% from the market-implied outlook, CVS meets this criterion. The market-implied outlook is neutral with a slight bullish tilt. Considering the strong earnings growth in recent quarters, the Wall Street consensus outlook, and the substantially-improved market-implied outlook, I am changing my rating on CVS to bullish.
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CVS Health to host 2021 Investor Day on December 9
Tuesday, November 9, 2021
https://cvshealth.com/news-and-insights/press-releases/cvs-health-to-host-2021-investor-day-on-december-9
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced it will hold its 2021 Investor Day on Thursday, December 9, in New York City. Members of the executive leadership team will provide an in-depth review of the company's strategy and long-term financial goals. The company also plans to provide financial guidance for 2022.
The conference will begin at 8 AM ET. An audio and video webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website at http://investors.cvshealth.com. Presentations and other accompanying material will be available on the website shortly before the event begins and archived for one year along with a replay of the event.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
T.J. Crawford
CVS Health
212-457-0583
CrawfordT2@CVSHealth.com
Investor contact
Susie Lisa, CFA
CVS Health
401-770-4050
Susan.Lisa@CVSHealth.com
CVS Following Our Technical Prescription
By: MPTrader | November 7, 2021
Early on October 15, when CVS Health Corporation (CVS) was trading at 85.92, Mike Paulenoff highlighted upside opportunity for MPTrader members, writing:
"For the past 5 months, CVS has gone pretty much nowhere after hitting a new 6 year high at 90.61 on 5/25/21. It is precisely because CVS has traversed a sideways price path since late May that makes my work interpret the CVS technical setup as extremely promising for a run above 90.61 towards 100, and possibly 108-110 in the upcoming weeks and months."
Mike again wrote positively about the stock on October 20, when it was trading at 86.45, commenting:
"If my intermediate-term technical work is telling us anything about CVS, it is saying, 'watch me rocket above 90 towards a 100+ target!' Only a failure to hurdle 87 followed by a decline beneath 82 will compromise the developing anticipated thrust to the upside."
CVS began climbing on October 26, taking out key resistance at its prior failed rally peak at 87.80, The stock continued to strengthen right into last week's earnings report on November 3, when the company beat the Street's estimates on earnings, revenues, and guidance, propelling the stock to 96.57, its highest price in over five years.
At that high, CVS was 12.4% above its price at Mike's initial alert.
What's next for CVS? The strength of the consumer and another round of Covid-19 (booster) shots tie into the strength of CVS, which according to Mike's technical setup work has unfinished business on the upside as it heads towards 100-102 next. But will there be a period of rest-digestion first?
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CVS Pharmacy announces new ExtraCare BeautyClub loyalty perks
Thursday, November 4, 2021
https://cvshealth.com/news-and-insights/press-releases/cvs-pharmacy-announces-new-extracare-beautyclub-loyalty-perks
Innovative loyalty program now offers more opportunities to discover wellness-driven beauty with free gifts from popular brands, exclusive VIP savings events, and frequent rewards
WOONSOCKET, R.I. — CVS Pharmacy, the retail division of CVS Health, today announced enhancements to its ExtraCare BeautyClub® loyalty program. The updates are a direct response to customer feedback for a more experiential beauty rewards program.
Beginning today, BeautyClub members will enjoy exciting new benefits, including:
• The choice of a free beauty gift each month when members spend $30 on qualifying beauty products.
• Redeemed in stores or on CVS.com, members can select from several exciting options each month, from crowd-favorite, skin health and wellness-driven brands.
• The opportunity to earn an additional 10% ExtraBucks Rewards on special days during the semiannual CVS Epic Beauty Events and throughout new Beauty VIP Private Sales Events, for a maximum of $20 per event.
• Personalized deals and mobile exclusive beauty offers sent to members via an SMS text message or push from the CVS App.
BeautyClub members now earn access to CVS’ first Beauty VIP Private Sale Event which begins this month. Happening from November 14 to November 27, exclusive deals will include:
• 25% off select brands from coveted indie and on-trend offerings like Revolution Beauty, Rainbow, ella+mila and GSQ by Glamsquad, as well as pro salon haircare, including Biolage, Big Sexy Hair, It’s a 10 and American Crew.
• The opportunity to earn 10% back in ExtraBucks Rewards across all qualifying BeautyClub categories throughout the private sale event, for a maximum of $20 per event.
These program updates demonstrate the commitment from CVS Pharmacy to bring customers an unparalleled loyalty experience, along with elevated beauty benefits that deliver value and the excitement of discovering individual, wellness-driven beauty solutions within the CVS aisles.
“We are always looking for ways to inspire our beauty customers with a selection — and an experience — that simultaneously offers value and innovation,” said Andrea Harrison, VP of Merchandising, Beauty & Personal Care. “In line with our ongoing mission to deliver the brands and trends that speak to our customers, the revamped BeautyClub makes the discovery of cutting-edge products and wellbeing solutions more exciting and accessible than ever before.”
The BeautyClub update comes on the heels of recent major program changes to CVS Pharmacy’s long-standing, popular and free ExtraCare® Rewards loyalty program, which give ExtraCare members more flexibility in how they earn and spend rewards.
“Our reimagined loyalty programs are designed to meet our customers’ evolving wants and needs” said Michele Driscoll, VP Customer Engagement, Loyalty and Personalization, CVS Health. “We’re thrilled to bring our ExtraCare program members more flexibility in how they earn and spend their beloved ExtraBucks rewards and now offer our BeautyClub members exciting insider access, monthly gifts and extra rewards.”
ExtraCare and BeautyClub members will also find an enhanced “Rewards Tracker” in the upgraded CVS App where they can easily see their benefits, earning status and manage rewards.
Members are encouraged to download the CVS App for the optimal ExtraCare and BeautyClub experience and can also choose to receive coupon reminders and special offers via ExtraCare SMS text messages, including surprise deals on trending beauty items.
For more information about CVS Pharmacy’s BeautyClub, visit
www.cvs.com/extracare-cvs/beauty-club.
And for additional information on ExtraCare, visit www.cvs.com/extracare. Customers can also sign up for ExtraCare and BeautyClub for free online or within the CVS Pharmacy mobile app.
About CVS Pharmacy
CVS Pharmacy, the retail division of CVS Health, is America's leading retail pharmacy with nearly 10,000 locations, including over 1,700 pharmacies inside of Target and Schnucks grocery stores. We are committed to delivering innovative health solutions that create a simpler, more accessible experience for patients, customers, and caregivers. CVS Pharmacy is the only national pharmacy to remove tobacco products from its shelves and has taken a leadership role in responding to the COVID-19 pandemic by making testing and vaccinations available at locations across the United States. For the latest product and service offerings, visit www.cvs.com or download the CVS App.
Media contact
Courtney Coelho
401-465-9209
Courtney.Coelho@CVSHealth.com
CVS Health Corp. (CVS): Fast Fundamental Analysis
By: Chuck Carnevale | November 4, 2021
Introduction
According to Zacks Investment Research CVS Health is the world’s 7th largest company by revenue and ranked 7th on the Fortune Global 500 list. The company reported Q3 earnings on November 2, 2021 and reported Non-GAAP EPS of $1.97 beats by $0.18; GAAP EPS of $1.20 misses by $0.20. Revenue of $73.79B (+10.0% Y/Y) beats by $3.27B.
CVS appears to be significantly undervalued and offers a margin of safety more than 27%. The company’s current dividend yield is approximately 2.2% and the company’s earnings yield is a strong 8.48%. Consequently, CVS appears to be very attractive as a total return opportunity based on future expected earnings growth plus P/E ratio expansion back to a more normal fundamentals justified fair value.
Your headline missed. Yesterday was a historic PPS gain.
CVS Health announces availability of Pfizer-BioNTech COVID-19 pediatric vaccine to children ages five to 11
A young person, seen inside a CVS Pharmacy, receives a COVID-19 vaccination.
Wednesday, November 3, 2021
Shots for eligible children to be available at nearly 1,700 CVS Pharmacy locations
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced that select CVS Pharmacy locations will be offering a two-dose primary series of the Pfizer-BioNTech COVID-19 pediatric vaccine to children ages five to 11 years of age starting on Sunday, 11/7, upon receipt and confirmation of vaccine supply. This follows authorization of the vaccine by the Centers for Disease Control and Prevention (CDC) based on guidance from the organization's Advisory Committee on Immunization Practices and Food and Drug Administration (FDA) Emergency Use Authorization. Parental or legal guardian consent is required for this age group, and children must be accompanied by an adult.
"We know many parents have been waiting for the opportunity to vaccinate their young children and are looking for convenient access to a trusted resource for vaccinations," said Troyen A. Brennan, M.D., MPH, Executive Vice President and Chief Medical Officer of CVS Health. "Our immunizers have been preparing for this important role, and stand ready to help answer parents' questions, guide them and their children through the process, and administer the vaccines safely, with kindness and caring."
The Pfizer-BioNTech pediatric vaccine is one-third of the adult dose and will be available at nearly 1,700 CVS Pharmacy locations in 46 states, Puerto Rico and Washington D.C. Because the Pfizer-BioNTech vaccine is the only FDA-authorized COVID-19 vaccine for children in this age group, patients are strongly encouraged to schedule an appointment online at CVS.com or through the CVS App to ensure availability. The scheduling tool will only display appointments at CVS Pharmacy locations that have the Pfizer-BioNTech pediatric vaccine once the patient's age is provided.
CVS Health has administered approximately 43 million COVID-19 vaccines to date and has been administering the COVID-19 vaccine to children ages 12 years and older since authorized by the FDA and recommended for that age group by the CDC earlier this year. In addition, CVS Pharmacy has comprehensive experience in safely providing many other vaccines to children, such as seasonal flu, Tdap and chickenpox. Parents must accompany children ages five to 15 years of age, and CVS Pharmacy recommends that children wear clothing that allows easy access to their arms, such as a short sleeve shirt. As with the adult COVID-19 vaccination, children and their parent or guardian will need to remain in the pharmacy area for at least 15 minutes following vaccination for observation.
CVS Pharmacy locations that will be administering the vaccine to children ages five to 11 years were selected because these locations have vaccinators on site who are solely focused on administering vaccines. CVS vaccinators in these locations have also received additional training on managing pediatric vaccinations to help ensure the best experience for children and their families. In addition, CVS Health is developing an in-store experience focused on reassuring and supporting the child and their parent or guardian throughout the process. This includes the introduction of various child-friendly elements in the coming weeks designed to help motivate and reward the children and help keep them entertained during the post-vaccination observation period.
CVS Health has played a prominent role in administering third doses to immunocompromised patients and booster shots to eligible populations, while continuing to focus on removing the barriers that make it difficult for certain populations to easily access the COVID-19 vaccine. In addition, the company has administered approximately 38 million COVID-19 tests across the country to date.
Multimedia assets, including sound bites from Stephanie Whyte, MD, a trained pediatrician and Senior Clinical Solutions Medical Director for CVS Health, and b-roll and still photography from in-store pediatric COVID-19 vaccinations, are available here.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Matthew Blanchette
401-524-6185
Matthew.Blanchette@cvshealth.com
CVS Health announces $10 million commitment to the American Diabetes Association to reach five million patients and transform health outcomes
Tuesday, November 2, 2021
Support will increase access for people with diabetes and caregivers to education, resources, and guidance to improve their overall health
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced a new partnership with the American Diabetes Association® (ADA) to support families in helping to prevent and manage diabetes, as well as fund research on the devastating health disparities that fuel the diabetes epidemic. CVS Health has committed $10 million over three years to support people in preventing and managing diabetes with increased awareness, knowledge, and action to improve health through Project Power. The ADA’s Project Power program aims to break down barriers that limit access to vital resources and empower participants to effectively prevent and manage diabetes.
In addition, support will fund research to better understand and address the unmet needs in underserved communities leading to the future elimination of these disparities. CVS Health will also host an in-store fundraising campaign at all CVS Pharmacy locations nationwide during American Diabetes Month, now through November 27, to give customers an opportunity to support the ADA and build a future without diabetes.
“Health inequity is real—it directly fuels childhood obesity and contributes to higher risk and worse outcomes for people with diabetes, a reality that has been exacerbated by the COVID-19 pandemic,” said Charles Henderson, Chief of Development Officer of the American Diabetes Association. "By funding much-needed research to help tear down systemic barriers and providing critical resources, we can empower people of color who live with diabetes to take control of their health and live better, fuller lives."
The need for engagement and education on the problem of childhood obesity has never been more urgent. New data from the ADA shows that the incidence and acuity of type 2 diabetes in children increased significantly, close to doubling, during the peak of the COVID-19 pandemic. More pediatric patients were hospitalized from March to December 2020 compared to the same period in 2019.
CVS Health’s support will also fund needed research on the causes of health disparities in our nation. The risk of being diagnosed with diabetes among Black Americans is 77% higher when compared to white Americans, data shows. It also estimates that Black Americans spend two times more on health care than white Americans—a disparity that amplifies the burden of additional medical expenses all people with diabetes take on. Amid COVID-19, these imbalances have been exasperated, with 50% of low-income Americans with diabetes having lost some or all income during the pandemic.
“Over the past 18 months, we’ve seen COVID-19 bring health disparities to the forefront, shedding additional light on the barriers to care that families across the country face every day,” said Eileen Howard Boone, Senior Vice President of Corporate Social Responsibility and Philanthropy for CVS Health, and President of the CVS Health Foundation. “CVS Health is committed to addressing the disparities resulting from social determinants like race, ethnicity, lack of access, and cost. Through our partnership with the American Diabetes Association, we will help increase access to health care among high-risk and vulnerable populations and provide them with the educational resources they need to stay healthy.”
A primary focus of Project Power will be to encourage adults to take control of their diabetes and to raise awareness among the 88 million Americans living with prediabetes through risk tests and health screenings.
To learn more about the partnership and access diabetes resources, visit cvs.com/diabetes.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
About the American Diabetes Association
Every day more than 4,000 people are newly diagnosed with diabetes in America. More than 122 million Americans have diabetes or prediabetes and are striving to manage their lives while living with the disease. The American Diabetes Association (ADA) is the nation’s leading voluntary health organization fighting to bend the curve on the diabetes epidemic and help people living with diabetes thrive. For 81 years the ADA has been driving discovery and research to treat, manage and prevent diabetes, while working relentlessly for a cure. We help people with diabetes thrive by fighting for their rights and developing programs, advocacy and education designed to improve their quality of life. Diabetes has brought us together. What we do next will make us Connected for Life. To learn more or to get involved, visit us at diabetes.org or call 1-800-DIABETES (1-800-342-2383). Join the fight with us on Facebook (American Diabetes Association), Twitter (@AmDiabetesAssn) and Instagram (@AmDiabetesAssn).
Media contact:
Eva Pereira
781-686-4200
PereiraE1@cvshealth.com
CVS Health (CVS) Stock Slips On Q3 Earnings Beat, 2021 Profit Outlook Boost
By: TheStreet | November 3, 2021
• CVS lifted its full-year profit outlook following stronger-than-expected third quarter earnings that included $73.8 billion in total group revenues.
CVS Health Corp. (CVS) posted stronger-than-expected third quarter earnings Wednesday, and lifted its 2021 profit forecast, as COVID vaccinations powered solid gains in retail and pharmacy sales.
CVS said adjusted earnings for the three months ending in September were pegged at $1.97 per share, up 18.7% from the same period last year and firmly ahead of the Street consensus forecast of $1.78 per share. Group revenues, CVS said, rose 10% from last year to $73.8 billion, again topping analysts' estimates of a $70.5 billion tally.
Same sore sales were up 9.6% from last year, CVS said, while pharmacy store sales rose 8.8%, both benefiting from the group's administering of 11 million COVID vaccinations and a further 8 million tests over the three month period.
Looking into the final months of the 2021 financial year, CVS lifted its forecast for adjusted earnings, which it now sees in the region of $7.90 to $8.00 per share, a 20 cents per share improvement from its prior forecast, with cash flow from operations in the region of $13 billion to $13.5 billion.
"We outperformed expectations once again and continue to lead the way in changing how, when and where care is delivered for millions of Americans," said CEO Karen Lynch. "Our services are responsive to evolving consumer needs, from administering millions of COVID-19 tests and vaccines to offering primary care accessible from virtually anywhere, and our touchpoints allow for unmatched impact."
CVS shares were marked 0.7% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $90.50 each.
Pharmacy Services revenues rose 9.4% to $39.05 billion, CVS said, Retail sales rose 10% to $25 billion, "primarily driven by the administration of COVID-19 vaccinations and diagnostic testing, increased prescription and front store volume."
The group's healthcare benefits division saw sales rise 9.5% to $20.5 billion as it added Aetna's operations to its legacy business.
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I'm not sure how the street will react to the lowering of GAAP diluted EPS guidance? Everything else in the entire report is glowing.
Regarding a dividend increase, I'm sure it will be brought up in the conference call. I had been assuming they wanted to pay down about $30B of debt from the $80B Aetna Purchase Price. I'm not seeing it being accomplished in 2022.
Let's wait to hear what they have to say.
2021 Full Year Guidance
The Company revised its full year 2021 GAAP diluted EPS guidance range to $6.13 to $6.23 from $6.35 to $6.45, raised its full year 2021 Adjusted EPS guidance range to $7.90 to $8.00 from $7.70 to $7.80 and raised its full year 2021 cash flow from operations guidance range to $13.0 billion to $13.5 billion from $12.5 billion to $13.0 billion.
The adjustments between GAAP diluted EPS and Adjusted EPS include, as applicable, adding back amortization of intangible assets, integration costs related to the Company’s acquisition (the “Aetna Acquisition”) of Aetna Inc. (“Aetna”), the LTC goodwill impairment, an acquisition purchase price adjustment outside of the acquisition accounting measurement period and a loss on early extinguishment of debt.
Total revenues increased 9.5% for the three months ended September 30, 2021 compared to the prior year primarily driven by growth in the Government Services business, partially offset by the unfavorable impact of the repeal of the HIF for 2021.
Paid down a net of $1.1 billion of long-term debt, while returning $659 million to shareholders through dividends during the three months ended September 30, 2021. Since the close of the acquisition of Aetna Inc. in November 2018, the Company has repaid a net of $18.7 billion of long-term debt.
CVS director of organized retail crime explains how professional thieves are stealing $2,000 from stores in just 2 minutes
By: Business Insider | November 2, 2021
• CVS Health's director of organized retail crime testified at a Senate committee hearing Tuesday.
• He said the average professional thief targeting a CVS Pharmacy steals $2,000 in just two minutes.
• Retailers are pointing to e-commerce for the spike in "sophisticated and highly dangerous" crime rings.
Organized retail crime-related events are reported in a CVS Pharmacy store every three minutes. In just two minutes, the average professional thief targeting CVS steals $2,000 worth of goods.
That's according Ben Dugan, the director of organized retail crime and corporate investigations at CVS Health. On Tuesday, he testified alongside fellow retailers at a Senate judiciary committee hearing to discuss the illegal sales of stolen and counterfeit goods online.
It's an issue Dugan has personally investigated for over 30 years - and he said it's only getting worse due to the lack of regulation surrounding online marketplaces such as Amazon and eBay.
"The ease with which online sellers can open and close their sites, essentially undetected, is directly related to this increase in criminal activity in our stores," he told legislators, adding that an estimated $500 billion in illicit stolen and counterfeit goods are sold on third-party marketplaces like Amazon each year.
"Let me just be clear about what organized retail crime is not. It is not everyday shoplifting," Dugan told the committee. "It is not individuals committing singular opportunistic thefts for personal reasons. It is organized, it is sophisticated, and it is massive in scale."
He said these complex crime rings often begin with a "booster" who steals from stores directly or recruits others to steal for them. The use of a weapon or physical violence during these thefts has more than doubled in the last year and a half, Dugan added.
The booster then delivers the haul to a "fence" who collects and transports the stolen goods to a consolidation site such as a warehouse.
From there, "the stolen goods can be sold directly online to unsuspecting customers, to other third-party sellers (some of whom know the goods are stolen or counterfeit) or distributed to the marketplaces themselves to fulfill orders," he explained.
Crimes like these cost retailers an estimated $45 billion in losses each year, according to the The Coalition of Law Enforcement and Retail.
Until recently, Amazon opposed past legislative efforts aiming to combat the sale of stolen goods online, arguing that some regulations could hurt small online sellers. However, the e-commerce giant voiced its support for the US House version of the INFORM Act last week, citing the "express preemption provision."
The bill's recent addition gives "Amazon and other online marketplaces flexibility in how we stop bad actors" and "will not favor" big-box retailers like Walmart and Home Depot over small businesses, Amazon said.
" ... we strongly support legislative efforts to stop bad actors from harming consumers, including increasing penalties against online criminals and providing greater resources for law enforcement. In addition to our industry-leading efforts to verify a seller's identity and ensure that only authentic and legal products are sold in our store, we've also created our own Counterfeit Crimes Unit to work directly with law enforcement to bring these bad actors to justice," Amazon's Vice President of Public Policy Brian Huseman wrote in a statement.
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Aetna launches Gene-Based, Cellular and Other Innovative Therapies (GCIT) designated network
Wednesday, October 27, 2021
https://cvshealth.com/news-and-insights/press-releases/aetna-launches-gene-based-cellular-and-other-innovative-therapies
National network provides members access to over 75 designated GCIT service providers and helps manage the extremely high cost of these potentially curative gene therapy services for both customers and members
WOONSOCKET, R.I. — Aetna , a CVS Health company (NYSE CVS), announced the launch of its designated Gene-based, Cellular, and Other Innovative Therapies (GCIT) network. This network is designed to enable members' access to new therapies that treat and potentially cure rare genetic diseases, while helping to manage the high cost of these therapies. Aetna's national GCIT network includes access to more than 75 designated GCIT service providers that have demonstrated quality and value in the delivery of GCIT services.
"We're creating a differentiated provider network that our customers can experience as being caring, connected and convenient," said Richard Gentleman, Executive Director, National Partner Strategy, Aetna. "Our multi-pronged approach encompasses safety, member access to cutting-edge therapies, and cost management to support the medical and economic needs of our members and customers. It also paves the way for future FDA-approved gene therapies to be added quickly and cost-effectively so that we can help more people achieve their best health."
Beginning January 1, 2022, Aetna's designated GCIT network will provide three gene therapy services, including Luxturna, Spinraza and Zolgensma for the treatment of inherited retinal disease and spinal muscular atrophy. The GCIT network is included as a standard medical benefit in all Aetna fully insured plans and is also available to self-insured plans.
Through Aetna's designated GCIT network, members and customers benefit from:
• A comprehensive strategy to support access and manage the cost of current and future FDA-approved gene therapies.
• A network of more than 75 designated GCIT service providers that have demonstrated quality and value in the delivery of GCIT services.
• A dedicated clinical team to guide members and providers through the health care process, including case management, where applicable, and travel and lodging support for members who need to travel 100 miles or more for care.
The GCIT network also offers a financial protection program for CVS Caremark clients and Aetna plan sponsors who do not have traditional stop-loss.
"Gene therapy is poised for significant growth in the coming years, and the promise of durable improvement for patients with challenging diseases is exciting," said Joanne Armstrong, M.D., MPH, Chief Medical Officer, Women's Health and Genomics at CVS Health. "Yet, high costs associated with these therapies continue to pose a significant challenge. It is therefore vital that they are delivered by highly-specialized providers in an environment that can provide the patient receiving the therapy a high potential of a successful outcome."
By utilizing a GCIT-designated provider, members will be receiving treatment from a provider that has demonstrated experience in providing these unique services. Providers in the GCIT network must meet manufacturer-specific guidelines and Aetna cost and credentialing standards.
Since 2018, Aetna has managed Chimeric Antigen Receptor T-cell (CAR-T) services, an early genetically engineered therapy, through a long-standing transplant network department, the National Medical Excellence Program . An additional 120 bone marrow/stem cell transplant facilities that have been designated to perform CAR-T services are located here.
A list of GCIT-approved network facilities can be found here. To learn about additional solutions CVS Health is developing to help mitigate the financial impact for our customers and their plan members, please read our white paper on gene therapy.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
About Aetna
Aetna, a CVS Health business, serves an estimated 34 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, visit www.aetna.com and explore how Aetna is helping to build a healthier world.
Media contact
Ethan Slavin
860-273-6095
SlavinE@cvshealth.com
CVS Health names Dr. Joneigh S. Khaldun as Vice President and Chief Health Equity Officer
https://cvshealth.com/news-and-insights/press-releases/cvs-health-names-dr-joneigh-s-khaldun-as-vice-president-and-chief
Monday, October 18, 2021
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced that Joneigh Khaldun, M.D., MPH, FACEP has joined the company as Vice President and Chief Health Equity Officer. She will report to Kyu Rhee, M.D., MPP, Senior Vice President and Aetna Chief Medical Officer.
Dr. Khaldun will lead the strategy to advance health equity for patients, members, providers, customers, and communities served across all lines of the CVS Health business. She and her team will focus on culturally competent care delivery, ensuring it is fully integrated into the design and development of clinical and population health programs, products, services, interactions and communications. She will also work collaboratively with the broader health care system to advance health equity and better support underserved communities.
“As a health care innovation company committed to health equity and breaking down barriers that perpetuate health care disparities, Dr. Khaldun joins our team as Chief Health Equity Officer at a critically important time,” said Rhee. “Her expertise in creating solutions to help improve health outcomes will help us continue addressing health inequities for the customers and communities we serve.”
Prior to joining CVS Health, Dr. Khaldun served as the Chief Medical Executive for the State of Michigan and Chief Deputy Director for Health in the Michigan Department of Health and Human Services, where she was responsible for public health and aging programs, Medicaid and behavioral health. She led Michigan’s COVID-19 response and is credited for Michigan’s early identification of and strategy to address disparities in COVID-19 outcomes. In 2021, she was named by President Biden to the COVID-19 Health Equity Task Force.
Previously, Dr. Khaldun held several positions that leveraged her expertise in improving, expanding and modernizing the delivery of community health services, including Director and Health Officer for the Detroit Health Department and Chief Medical Officer of the Baltimore City Health Department. She was also Director of the Center for Injury Prevention and Control at George Washington University, Founder and Director of the Fellowship in Health Policy in the University of Maryland Department of Emergency Medicine, and Fellow in the Obama-Biden administration’s Office of Health Reform in the U.S. Department of Health and Human Services.
Dr. Khaldun obtained her undergraduate degree from the University of Michigan, medical degree from the University of Pennsylvania, MPH in Health Policy from George Washington University, and completed residency in emergency medicine at SUNY Downstate Medical Center/Kings County Hospital in Brooklyn, NY. She practices emergency medicine part-time at Henry Ford Hospital in Detroit.
She currently serves on the National Advisory Board for the Institute for Healthcare Policy and Innovation at the University of Michigan, the Board of Directors of Big Brothers Big Sisters of Metropolitan Detroit, and on the Health and Medicine Committee of the National Academies of Science, Engineering and Medicine. She is an Adjunct Professor in the Department of Health Policy and Management in the University of Michigan School of Public Health.
About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Ethan Slavin
860-273-6095
slavine@cvshealth.com
CVS Health announces quarterly dividend
Tuesday, October 5, 2021
CVS Stock Boosted by Latest Vaccine Developments
By: Schaeffer's Investment Research | September 27, 2021
• CVS' fundamentals make it a safe play
• CVS now offers Pfizer-BioNTech COVID-19 booster shots to eligible populations
Pharmacy giant CVS Health Corporation (NYSE:CVS) has played an integral in vaccine and Covid-19 testing facilitation. Last week, the company announced that select CVS Pharmacy and MinuteClinic locations had begun offering the Pfizer-BioNTech COVID-19 booster shot to eligible populations following approval from the CDC. As the CDC reviews the efficacy of the other booster shots, expect CVS to remain at the forefront of the inoculation process.
CVS stock is up 25% in 2021 and 48% in the last 12 months. Don't expect much contrarian pessimism to unwind and send CVS toward its May 24 record high of $90.61. The majority of analysts rate the stock a "buy" or better, with zero sells on the books. Moreover, a slim 1.2% of the stock's total available float is sold short.
Where there could be unwinding though, is in the options pits. CVS' Schaeffer's put/call open interest ratio (SOIR) of 0.71 registers in the 93rd percentile of its annual range. This suggests near-term options traders are much more put-heavy than usual right now.
From a fundamental point of view, CVS stock remains an attractive long-term value play. CVS Health Corporation offers a forward dividend of $2.00 and a dividend yield of 2.33%.Not only does CVS stock offer a decent dividend yield, but also a strong forward price-earnings ratio of 10.56 which is a significant improvement on its current price-earnings ratio of 15.69. Furthermore, CVS Health has maintained consistent top- and bottom-line growth in recent years, with its revenues growing 50.6% and net income increasing 9% since fiscal 2017. Overall, CVS stock is one of the safest stocks to buy in the market at the moment.
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CVS Health announces availability of Pfizer-BioNTech booster shot to eligible populations
Friday, September 24, 2021
https://cvshealth.com/news-and-insights/press-releases/cvs-health-announces-availability-of-pfizer-biontech-booster-shot
COVID-19 booster shots to be available at nearly 6,000 CVS Pharmacy and MinuteClinic locations beginning today
WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced that, following approval from the Centers for Disease Control and Prevention (CDC) based on guidance from the organization's Advisory Committee on Immunization Practices (ACIP), select CVS Pharmacy and MinuteClinic locations are now offering the Pfizer-BioNTech COVID-19 booster shot to eligible populations beginning today, Friday, September 24.
Following guidelines set by ACIP and CDC:
• People 65 years and older and residents in long-term care settings should receive a booster shot of Pfizer-BioNTech's COVID-19 vaccine at least 6 months after their Pfizer-BioNTech primary series
• People aged 50 to 64 with certain underlying medical conditions should receive a booster shot of Pfizer-BioNTech's COVID-19 vaccine at least 6 months after their Pfizer-BioNTech primary series
• People 18 to 49 who are at high risk for severe COVID-19 due to certain underlying medical conditions may receive a booster shot of Pfizer-BioNTech's COVID-19 vaccine at least 6 months after their Pfizer-BioNTech primary series, based on their individual benefits and risk
• People aged 18-64 years who are at increased risk for COVID-19 exposure and transmission because of occupational or institutional setting may receive a booster shot of Pfizer-BioNTech's COVID-19 vaccine at least 6 months after their Pfizer-BioNTech primary series
Individuals who initially received the Moderna or Johnson & Johnson (Janssen) COVID-19 vaccine are not eligible for a booster at this time, per guidance from the public health agencies.
"We have the experience and the infrastructure to play a leading role in administering booster shots to eligible populations," said Troyen A. Brennan, M.D., MPH, Executive Vice President and Chief Medical Officer of CVS Health. "We also continue to make it as convenient as possible for the unvaccinated to receive their first doses."
Individuals interested in receiving the Pfizer-BioNTech COVID-19 booster or their initial vaccine series are strongly encouraged to make an appointment at CVS.com or MinuteClinic.com to ensure they are able to access the correct vaccine at a convenient time and location.
Currently, each participating CVS Pharmacy and MinuteClinic location is offering either the Pfizer-BioNTech, Moderna, or Johnson & Johnson (Janssen) vaccine, not all three.
When scheduling an appointment on cvs.com, patients will be asked to provide the manufacturer and date of their last COVID-19 vaccine and will be able to schedule an appointment for a Pfizer-BioNTech booster dose if they have had two previous doses with the same vaccine at least six months prior. Per guidance from the CDC, patients will be asked to self-attest to their eligibility as defined by the eligibility guidelines, to help reduce barriers to access for these select populations.
CVS Health has administered more than 34 million COVID-19 vaccines and 32 million COVID-19 tests across the country to-date. The company has played a prominent role in administering third doses to the immunocompromised and is prepared to provide booster shots from other manufacturers, as well as expand vaccine eligibility to ages 5-11, as soon as authorized to do so by public health agencies.
About CVS Health
CVS Health is the leading health solutions company, delivering care in ways no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Matthew Blanchette
Matthew.Blanchette@cvshealth.com
401-524-6185
True Privilege
CVS launches a program that forces hourly employees to discuss their “privilege.”
Christopher F. Rufo
September 22, 2021
Last year, CVS Health Corporation—the largest pharmacy chain in the United States—paid then-CEO Larry Merlo almost 618 times the median company wage, while simultaneously launching a mandatory “antiracist” training program for hourly employees to deconstruct their “privilege.”
I have received whistleblower documents from inside CVS that reveal the company’s extensive race-reeducation program, which is built on the core tenets of critical race theory, including “intersectionality,” “white privilege,” and “unconscious bias.”
As a keynote for the initiative, Merlo—who has since retired—hosted a conversation with Boston University professor Ibram Kendi, who told 25,000 CVS employees that “to be born in [the United States] is to literally have racist ideas rain on our head consistently and constantly.” Kendi argued that Americans are “walking through society completely soaked in racist ideas,” including children as young as two to three years old. “Our kids are basically functioning on racist ideas, choosing who to play with based on the kid’s skin color,” Kendi said. The solution, in part, is to “diagnose” employees as “racist” in order to help them become “antiracist” and “stop hurting somebody else.”
A series of related training modules instructed employees to deconstruct their racial and sexual identities, then rank themselves according to their “privilege.” The exercise is grounded in the theory of intersectionality, which holds that individuals can be reduced to a network of overlapping identities that determine their position on the social hierarchy, with privileged groups occupying the “oppressor” role and unprivileged groups in the “oppressed” role. The training asked CVS employees to circle their identities—including race, gender, sexuality, and religion—and then reflect on their “privilege” during the discussion. Examples of privilege, according to a checklist, included “celebrat[ing] Christmas,” “hav[ing] a name that is easy to pronounce,” “feel[ing] safe in your neighborhood at night,” and “feel[ing] confident in my leadership style.”
Another exercise, called “Say This, Not That,” provided employees with detailed racial etiquette “reference cards” to reorient their speech to the values of “diversity, equity, and inclusion.” Employees were told to cease using “problematic phrases,” including “I’m colorblind,” “I grew up poor,” “peanut gallery,” “I’m not racist,” and “we must stand up for minorities.” All these phrases, according to the training program, are racist microaggressions that minimize the existence of “systemic racism,” have a “racist history,” and “could be seen as discrediting the experiences of Black people and their culture.” The goal of the training, documents say, is to create “psychological safety” for underprivileged and historically oppressed groups that might feel endangered by phrases such as “sexual preference,” “grandfathered in,” and “off the reservation.”
The irony of these “privilege” programs is inescapable. In recent years, Merlo, enjoying the highest executive-to-employee compensation in the United States, was called “the most obscenely overpaid CEO in America.” Last year, Merlo earned $22 million in total compensation—compared with the median CVS employee salary of $35,529—yet still lectured his 300,000 employees about their “privilege.” Far from being a bottom-up program of empowerment, the new ideology of “antiracism” allows elites such as Merlo to assuage their guilt and shift blame to average Americans.
Predictably, the program has provoked dissent. One CVS worker, who requested anonymity out of fear of reprisals, blasted the new program. “I have worked at CVS a long time, and we have never had a problem with discrimination or division. Quite the opposite: people of diverse backgrounds always have pulled together to solve complex problems,” said the employee, arguing that the politicized training program will ultimately undermine the company’s prospects. “Long-term, talent will drain, morale will suffer, and resentment will spread. This will contaminate our culture and threaten our long-term success.”
Unfortunately, CVS has shown no signs of backing down. Merlo retired at the beginning of this year, cashing out on a long career at the pharmacy. Meantime, executives continue to push the “antiracism” and “privilege” initiatives, hectoring employees to make a “personal commitment” constantly to “celebrate diversity, inclusion, and equity.” Any dissenters will pay the price. CVS promises “swift action against non-inclusive behaviors”—even if that inclusivity stops at the payroll department.
https://www.city-journal.org/inside-cvs-health-corporations-racial-reeducation-program
CVS Health to Hire 25,000 Across the U.S. During One-Day Virtual Career Event
Monday, September 20, 2021
https://cvshealth.com/news-and-insights/press-releases/cvs-health-to-hire-25000-across-the-us-during-one-day-virtual
Pharmacists, pharmacy technicians, nurses, and retail store associates in high demand to support flu season, COVID-19 vaccinations and testingCandidates can text "CVS" to 25000 to begin the application process
WOONSOCKET, R.I., Sept. 20, 2021 /PRNewswire/ -- CVS Health (NYSE: CVS) today announced that it is recruiting qualified candidates to fill 25,000 clinical and retail jobs during a one-day national career event on Friday, September 24. These new and existing positions will help the company continue to respond to the needs of communities across the country during the fall and winter months when the incidence of flu is expected to increase and as COVID-19 vaccination and testing remain in high demand.
CVS Pharmacy HealthHUB team interacts with a customer
Most of the available positions are for full-time, part-time, and temporary licensed pharmacists, trained pharmacy technicians and nurses at CVS Pharmacy store locations and will be filled as soon as possible, helping increase support for patients and fellow pharmacy professionals. Additional roles that are part of the company's recruiting efforts include retail store associates who provide attentive service, assist with purchases, and manage store inventory to ensure availability of desired health, wellness, and convenience products for customers.
In addition to flu vaccinations, the accelerated hiring campaign will aid the company in administering COVID-19 booster shots, pending regulatory approval, while continuing to offer shots to those who have yet to be vaccinated for COVID-19 and patients seeking testing at CVS Pharmacy locations across the country. CVS Health has administered more than 34 million COVID-19 vaccines and more than 32 million tests, with seamless online scheduling available at CVS.com.
"Every flu season we need additional team members," said Neela Montgomery, Executive Vice President, CVS Health and President, CVS Pharmacy, "but this year we're looking for even more. With the continued presence of COVID-19 in our communities, we're estimating a much greater need for pharmacists, trained pharmacy technicians, nurses, and retail store associates. These jobs offer a rewarding opportunity to really make an impact on public health in our country."
Qualified candidates can apply for these open positions using the company's mobile apply feature by Texting "CVS" to 25000 or by visiting the CVS Health Career Website to learn about jobs in their local area and enter a streamlined digital screening process that facilitates an online application, virtual job tryout and immediate hiring. There will be no on-site applications or interviews as the entire hiring process is virtual.
"By leveraging CVS Health's innovation and technology, we're making it easier for qualified and caring candidates to join our team and contribute to the company's ongoing efforts to help solve the country's health care challenges," said Jeffrey Lackey, Vice President of Talent Acquisition, CVS Health.
Opportunities for full-time employees include competitive pay, paid training, and a generous benefits package, including vacation, 7 paid holidays and one floating holiday, health/dental/vision insurance, employee discounted stock purchase program, 401K with company match, tuition reimbursement, career advancement opportunities, and a 20-30% employee discount at CVS retail stores.
CVS Health employees who refer full-time pharmacists or pharmacy technicians that are hired into the company will be eligible for a cash bonus.
The nationwide hiring event represents the latest investment in the company's employees, who have worked tirelessly throughout the pandemic and have been rewarded with bonuses and benefit enhancements. In August, CVS Health raised the corporate-wide minimum wage to $15 an hour, effective July 2022, with incremental increases to the company's competitive hourly rates starting immediately.
CVS Health is an equal opportunity and affirmative action employer. The company does not discriminate in recruiting, hiring or promotion based on race, ethnicity, sex/gender, sexual orientation, gender identity or expression, age, disability or protected veteran status or on any other basis or characteristic prohibited by applicable federal, state, or local law.
About CVS Health
CVS Health is the leading health solutions company, delivering care in ways no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
CVS Is Still A Bargain
Sep. 16, 2021 3:15 AM ET
CVS Health Corporation (CVS)
CVS Caremark launches new efforts to tackle health disparities
https://cvshealth.com/news-and-insights/press-releases/cvs-caremark-launches-new-efforts-to-tackle-health-disparities
Wednesday, September 15, 2021
Company expands existing initiatives to address systemic inequities with long-term, collaborative focus on community-based programs for patients with serious chronic illnesses
WOONSOCKET, R.I. — CVS Caremark, the Pharmacy Benefit Manager (PBM) of CVS Health (NYSE: CVS), today announced an expansion of its efforts to decrease health disparities among patients with certain conditions including sickle cell, HIV, and cardiovascular disease by collaborating with local partners and utilizing its unique enterprise assets. The company is increasing its investments in programs that address barriers to care and developing additional initiatives to help disadvantaged populations and alleviate inequities in the U.S. health care system.
CVS Caremark’s approach will focus on the following principles:
A four-pillar programmatic approach: 1) awareness and educational resources, 2) testing and screening, 3) access to health services, and 4) treatment optimization interventions
Collaborate with community-based organizations and patient advocacy groups to deliver care where the people are
Utilize enterprise assets including health care services available in CVS HealthHUB® locations and legacy corporate social responsibility programs such as Project Health where appropriate
Measure and share results on an ongoing basis for continuous learning
“We serve one in three Americans and have the information and insights that help us understand not just where the disparities in care are occurring but, most importantly, why,” said Alan Lotvin M.D., President of CVS Caremark and Executive Vice President, CVS Health. “We know systemic inequities have existed for decades and can’t be solved by one person, community or company. We believe we have the obligation and the ability to partner with others to change the health trajectory for many patients who have been impacted by them for too long.”
CVS Caremark is working with its clients to create health equity strategies for PBM members with certain conditions that disproportionately affect patients of color. The company will also use its broad reach and collaborate with community partners to determine the best ways to influence systemic change for those who’ve struggled with disease for many years and for newly diagnosed members.
Among its goals are doubling the number of patients on hydroxyurea for people living with sickle cell disease (SCD), improving adherence among those already on the drug, and significantly increasing trait testing. SCD is an incredibly painful disease that primarily affects communities of color and left untreated can lead to life-threatening complications. Hydroxyurea, a low-cost medication, can help patients better manage their condition by reversing the sickling of blood cells. In some areas the number of people with SCD has doubled because many people who carry the trait that can lead to developing the condition, are not aware of it. Increasing trait testing starting with greater awareness and education, can help consumers make more informed decisions. CVS Caremark plans to work with national and community organizations to understand the needs of local communities and develop programs to increase awareness and access.
The company is also adding to existing initiatives to increase awareness about HIV testing and prevention for CVS Caremark members, particularly among communities of color by sharing educational resources with those at risk, and helping patients initiate preventive therapy when appropriate. These efforts are incremental to the company’s ongoing participation in the Ready, Set, PrEP initiative by the U.S. Department of Health and Human Services aimed at eliminating 90 percent of new HIV infections by 2030 and helping end the AIDS epidemic. While a multitude of social, economic and demographic factors impact HIV transmission rates throughout the U.S., low-income individuals, minorities (especially African Americans and Hispanics/Latinos) and LGBTQ+ populations are among the most vulnerable to HIV.
For cardiovascular disease, CVS Caremark aims to increase initiation of medication therapy amongst people facing health disparities and help ensure those already on treatment are on an optimized dosage to reach their target blood pressure and staying adherent to their regimen.
In all disease areas, the company will work with local community organizations and advocacy groups to ensure those facing health inequities have access to the resources and care they need.
About CVS Health
CVS Health is the leading health solutions company, delivering care in ways no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health — whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system — and their personal health care — by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.
Media contact
Riddhi Trivedi-St Clair
206-535-6903
Riddhi.Trivedi-StClair@cvshealth.com
CVS Expected to Announce Quarterly Sales of $70.23 Billion
By: MarketBeat | September 8, 2021
• Analysts predict that CVS Health Co. (NYSE:CVS) will announce sales of $70.23 billion for the current quarter, according to Zacks. Six analysts have made estimates for CVS Health's earnings, with the highest sales estimate coming in at $70.83 billion and the lowest estimate coming in at $69.59 billion. CVS Health reported sales of $67.06 billion in the same quarter last year, which would suggest a positive year-over-year growth rate of 4.7%. The firm is scheduled to report its next quarterly earnings report on Friday, November 5th...
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CVS Health (CVS) EVP Sells $228,375.00 in Stock
By: MarketBeat | September 7, 2021
• CVS Health Co. (NYSE:CVS) EVP Troyen A. Brennan sold 2,625 shares of the firm's stock in a transaction dated Thursday, September 2nd. The shares were sold at an average price of $87.00, for a total value of $228,375.00. Following the transaction, the executive vice president now owns 140,201 shares of the company's stock, valued at $12,197,487. The sale was disclosed in a document filed with the SEC, which is available through the SEC website...
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CVS Health responds to latest update on COVID-19 vaccinations and testing
Thursday, September 9, 2021
https://cvshealth.com/news-and-insights/statements/cvs-health-responds-to-latest-update-on-covid-19-vaccinations-testing
Vaccinating more Americans is clearly the most effective way to prevail over the pandemic. We’ve administered more than 30 million vaccines, with a particular focus on those more susceptible to COVID-19, and are prepared to play a leading role in providing booster shots.
We’ve been ahead of the curve when it comes to vaccinations for our employees, announcing a requirement in August that impacts many of our 300,000 colleagues. We’ll review new requirements proposed by the administration and act accordingly.
COVID-19 testing continues to be a critical focus for us as well, with more than 30 million tests administered to date. We currently offer free testing at nearly 5,000 locations across the country, and recently expanded to more high-risk, underserved communities. We also offer four home testing products as a convenient alternative.
CVS Health (CVS) Sees Large Growth in Short Interest
By: MarketBeat | August 20, 2021
• CVS Health Co. (NYSE:CVS) was the recipient of a large growth in short interest in the month of July. As of July 30th, there was short interest totalling 16,100,000 shares, a growth of 15.9% from the July 15th total of 13,890,000 shares. Based on an average daily volume of 6,220,000 shares, the short-interest ratio is currently 2.6 days...
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Can CVS Stock Reach $100? Pounding The Table On My Top 2021 Pick
Aug. 24, 2021 12:20 PM ET
CVS Health Corporation (CVS)
CVS Health prices tender offer for up to ~$2.05B senior notes
Aug. 23, 2021 11:48 AM ETCVS Health Corporation (CVS)By: Ravikash, SA News Editor
CVS Health (CVS +0.2%) priced the tender offer for up to ~$2.05B of its 4.3% senior notes due 2028.
(the "Notes").
The reference yield is 1.250%. Total consideration $1.162.08 per $1,000 principal amount of notes validly tendered.
The company said notes validly tendered prior to 5:00 p.m., New York City time on Aug. 20 will be eligible to receive the total Consideration, which includes the early tender payment of $30 per $1,000 principal amount of notes.
CVS Health expects to accept for purchase and make payment for notes validly tendered on Aug. 24.
Sounds as if they will be redeeming notes to push out the due date.
Q3 2021 EPS Estimates for CVS Health Co. (CVS) Cut by Oppenheimer
By: MarketBeat | August 9, 2021
CVS Health Co. (NYSE:CVS) - Research analysts at Oppenheimer decreased their Q3 2021 earnings estimates for CVS Health in a research note issued on Wednesday, August 4th. Oppenheimer analyst M. Wiederhorn now forecasts that the pharmacy operator will earn $1.73 per share for the quarter, down from their previous forecast of $1.82. Oppenheimer also issued estimates for CVS Health's Q4 2021 earnings at $1.59 EPS, FY2021 earnings at $7.77 EPS, Q1 2022 earnings at $2.02 EPS, Q2 2022 earnings at $2.19 EPS, Q3 2022 earnings at $2.05 EPS and FY2022 earnings at $8.31 EPS...
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CVS Health (CVS) PT Raised to $101.00 at Deutsche Bank Aktiengesellschaft
By: MarketBeat | August 4, 2021
CVS Health (NYSE:CVS) had its price target lifted by stock analysts at Deutsche Bank Aktiengesellschaft from $95.00 to $101.00 in a report issued on Thursday, The Fly reports. The firm presently has a "buy" rating on the pharmacy operator's stock. Deutsche Bank Aktiengesellschaft's target price points to a potential upside of 23.85% from the company's previous close...
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CVS Stock Slides As COVID Cost Concerns Cloud Earnings Beat, Guidance Boost
By: TheStreet | August 4, 2021
• New CEO Karen Lynch said the quarter was highlighted by "broad sales and earnings outperformance, as well as sequential operating margin improvement."
CVS Health Corp. (CVS) posted stronger-than-expected second quarter earnings Wednesday, and lifted its full year profit guidance, thanks in part to a solid rebound in retail and pharmacy sales.
The stock traded lower, however, after the retailer said it would raise its minimum wage to $15 per hour in 2022 and noted COVID-related costs would rise over the final half of this year.
CVS said adjusted earnings for the three months ending in March were pegged at $2.42 per share, down 8.3% from the same period last year but well ahead of the Street consensus forecast of $2.06 per share. Group revenues, CVS said, rose 11.1% from last year to $72.6 billion, again topping analysts' estimates of a $70.3 billion tally.
Looking into the 2021 financial year, CVS lifted its forecast for adjusted earnings, which it now sees in the region of $7.70 to $7.80 per share, from its prior forecast of $7.56 to $7.68 per share.
"We delivered another quarter of strong results and once again raised our outlook for the year," said CEO Karen Lynch. "This quarter was highlighted by broad sales and earnings outperformance, as well as sequential operating margin improvement."
"We continue to play a critical role in helping America prevail against the pandemic while demonstrating the effectiveness of our unique business model, which is focused on meeting customer needs through innovations that make health care more local, affordable and connected," she added.
CVS shares were marked 3.23% lower in early trading immediately following the earnings release to change hands at $81.41 each.
Pharmacy Services revenues rose 9.7% to $38.3 billion, CVS said, Retail sales rose 14.3% to $24.73 billion, "driven by increased prescription volume, COVID-19 vaccinations and diagnostic testing and higher front store revenues across all product categories.
The group's healthcare benefits division saw sales rise 11.1% to $20.5 billion as it added Aetna's operations to its legacy business.
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CVS Health EPS beats by $0.35, beats on revenue, raises guidance • 6:31 AM
CVS Health (NYSE:CVS): Q2 Non-GAAP EPS of $2.42 beats by $0.35; GAAP EPS of $2.10 beats by $0.39.
Revenue of $72.61B (+11.1% Y/Y) beats by $2.34B.
Raised GAAP diluted EPS guidance range to $6.35 to $6.45 from $6.24 to $6.36 vs. $5.47 in FY20
Raised Adjusted EPS guidance range to $7.70 to $7.80 from $7.56 to $7.68 vs. $7.67 consensus.
Raised cash flow from operations guidance range to $12.5 billion to $13.0 billion from $12.0 billion to $12.5 billion vs. $15.9B in FY20
CVS Health (CVS) Stock Jumps After Retail-Driven Earnings Beat; Profit Guidance Boost
By: TheStreet | August 4, 2021
• New CEO Karen Lynch said the quarter was highlighted by "broad sales and earnings outperformance, as well as sequential operating margin improvement."
CVS Health Corp. (CVS) posted stronger-than-expected second quarter earnings Wednesday, and lifted its full year profit guidance, thanks in part to a solid rebound in retail and pharmacy sales.
CVS said adjusted earnings for the three months ending in March were pegged at $2.42 per share, down 8.3% from the same period last year but well ahead of the Street consensus forecast of $2.06 per share. Group revenues, CVS said, rose 11.1% from last year to $72.6 billion, again topping analysts' estimates of a $70.3 billion tally.
Looking into the 2021 financial year, CVS lifted its forecast for adjusted earnings, which it now sees in the region of $7.70 to $7.80 per share, from its prior forecast of $7.56 to $7.68 per share.
"We delivered another quarter of strong results and once again raised our outlook for the year," said CEO Karen Lynch. "This quarter was highlighted by broad sales and earnings outperformance, as well as sequential operating margin improvement."
"We continue to play a critical role in helping America prevail against the pandemic while demonstrating the effectiveness of our unique business model, which is focused on meeting customer needs through innovations that make health care more local, affordable and connected," she added.
CVS shares were marked 1.15% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $84.97 each.
Pharmacy Services revenues rose 9.7% to $38.3 billion, CVS said, Retail sales rose 14.3% to $24.73 billion, "driven by increased prescription volume, COVID-19 vaccinations and diagnostic testing and higher front store revenues across all product categories.
The group's healthcare benefits division saw sales rise 11.1% to $20.5 billion as it added Aetna's operations to its legacy business.
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Earnings Previews: CVS Health (CVS),...
By: 24/7 Wall St. | August 2, 2021
CVS Health
The country’s second-largest provider of health care plans, CVS Health Corp. (NYSE: CVS), has seen its stock price rise by more than 34% in the past 12 months. For the year to date, shares are up about 23%. The 12-month gain is about 5% below that of UnitedHealth but about 4% more year to date. Since July 1, the stock trades roughly flat, having recovered from a mid-month plunge related to the recall of a sunscreen product.
Analysts remain bullish on the stock, with 19 of 26 surveyed brokerages giving the stock a Buy or Strong Buy rating. The rest rate the shares at Hold. At a recent price of around $82.40, the stock’s upside potential based on a median price target of $95.50 is about 16%. At the high price target of $107, the implied upside is almost 30%.
The consensus revenue estimate is $70.27 billion, up 1.7% sequentially and about 7.8% year over year. Adjusted earnings per share (EPS) are forecast at $2.07, which would be three cents higher sequentially and down nearly 22% year over year. For the full year, analysts are looking for EPS of $7.67, up 2.2%, and revenue of $281.75, or about 4.9% more year over year.
The stock trades at 10.8 times expected 2021 EPS, 10.0 times estimated 2022 earnings and 9.1 times estimated 2023 earnings. The stock’s 52-week range is $55.36 to $90.61. CVS Health pays an annual dividend of $2.00 (yield of 2.43%)...
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CVS Health (CVS) Expected to Beat Earnings Estimates: Should You Buy?
By: Zacks Equity Research | July 28, 2021
The market expects CVS Health (CVS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2021. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This drugstore chain and pharmacy benefits manager is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of -21.6%.
Revenues are expected to be $70.08 billion, up 7.3% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.23% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for CVS Health?
For CVS Health, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.54%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that CVS Health will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that CVS Health would post earnings of $1.72 per share when it actually produced earnings of $2.04, delivering a surprise of +18.60%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CVS Health appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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READING $CVS/ [Valuation Analysis] Buy CVS before the Aetna acqusition is completed.
https://www.valuestocksblog.com/valuation-series/2018/1/13/valuation-analysis-buy-cvs-before-the-aetna-acqusition-is-completed
READING $CVS/ AETNA/ Aetna Acquisition
On December 3rd, 2017 CVS and Aetna (NYSE: AET), an American health insurance company, announced that they reached an agreement for CVS to acquire Aetna. The transaction is expected to close in the second half of 2018. It is subject to approval by CVS Health and Aetna shareholders, regulatory approvals and other customary closing conditions.
https://www.valuestocksblog.com/valuation-series/2018/1/13/valuation-analysis-buy-cvs-before-the-aetna-acqusition-is-completed
o Aetna Overview
· The third largest health insurance company in the U.S. with about 6% market share, serving an estimated 44.6 million people.
o Potential impact of the acquisition (synergy, etc.)
· Aetna currently has $61 billion in revenue. The combination of CVS and Aetna will most likely make the largest health care company in the U.S. in terms of the revenue.
CVS Caremark
CVS Caremark is the largest pharmacy health care provider in the United States. Through our integrated offerings across the entire spectrum of pharmacy care, we are uniquely positioned to provide greater access, to engage plan members in behaviors that improve their health, and to lower overall health care costs for health plans, plan sponsors, and their members. As one of the country's largest pharmacy benefit managers (PBMs), we provide plan sponsors and participants access to a network of approximately 64,000 pharmacies including more than 7,100 CVS/pharmacy stores.
We employ approximately 200,000 colleagues in 41 states, the District of Columbia, and Puerto Rico. As of September 30, 2010, we operated 7,152 retail stores, 569 MinuteClinic locations, 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, five mail service pharmacies, and our CVS.com and Caremark.com Web sites.
Quick Facts
* Headquarters located in Woonsocket, R.I.
* More than $99 billion in annual revenue
* Ranked 18th on Fortune 500 for 2010
* No. 1 provider of prescriptions – more than 1 billion prescriptions filled or managed annually
* No. 1 Specialty Pharmacy
* Largest employer of Pharmacists and Nurse Practitioners
* 75 percent of the U.S. population lives within three miles of a CVS
* No. 1 Retail Clinic Operator
* More than 8 million MinuteClinic patient visits to date
* No. 1 Retail Loyalty Program – more than 65 million active ExtraCare customers
For further information, contact:
Michael P. McGuire
Senior Director, Investor Relations
CVS Caremark Corporation
1 CVS Drive, Woonsocket, RI 02895
401-770-4050
The Nation’s Largest Provider of Prescriptions Filling or Managing More Than One Billion Prescriptions Annually
Verified Internet Pharmacy Practice Site (VIPPS)
A Program of the National Association of Boards of Pharmacy
Caremark.com
www.caremark.com
Corporation Caremark Rx, LLC | Phone 847-559-4700 |
Address 2211 Sanders Road Northbrook, IL 60062 | Per Lofberg President |
State of Incorporation CA | Experience Operating a Pharmacy Since June 1979 |
Retail Pharmacy
Step inside any of our more than 7,000 CVS/pharmacy locations from coast to coast, and you'll see that we have the prescription medications, related health care products, and other remedies you need "for all the ways you care." More than 20,000 highly trained Pharmacists are available to dispense prescriptions as well as helpful advice. We make things "CVS easy" for our pharmacy customers by offering 24-hour or extended-hours service in the pharmacy in 72 percent of our locations. Sixty percent of our stores provide drive-thru pharmacy windows as well. We also have more than 560 in-store MinuteClinic locations up and running, with more coming throughout 2010.
In the front of the store, customers appreciate our wide selection of popular beauty, health, and personal care brands as well as an assortment of exceptional brands not available at any other U.S. drugstore. Among them, our CVS/pharmacy store brand cough and cold products offer high-quality alternatives for value-conscious consumers. Our selection of proprietary brands includes favorites such as Cristophe® , Essence of Beauty®, Nuprin® , Playskool® , and Skin Effects by Dr. Jeffrey Dover®. CVS store brands as well as proprietary and other limited distribution products, with their higher margins, accounted for approximately 14 percent of our front-store sales in 2007. We are going to aggressively grow this business and expect it to represent 18 to 20 percent of front-store sales in the next three to five years.
Beauty is one of our core categories in the front of the store, and CVS/pharmacy was named Mass Beauty Retailer of the Year at the 2007 Women's Wear Daily Beauty Biz Awards.
Thomas M. Ryan
Chairman of the Board and Chief Executive Officer of CVS Caremark Corporation
Thomas M. Ryan, age 57, Chairman of CVS Caremark Corporation since November 2007 and Chief Executive Officer of CVS Caremark Corporation since May 1998; was President of CVS Caremark Corporation from May 1998 to May 2010; Chairman of CVS Corporation from April 1999 until March 2007; also President and CEO of CVS Pharmacy, Inc. from 1994 to 2007. Currently Director of Bank of America Corporation, and Yum! Brands, Inc.
Larry J. Merlo
President and Chief Operating Officer of CVS Caremark Corporation and President of CVS/pharmacy
Larry J. Merlo, age 55, President and Chief Operating Officer of CVS Caremark Corporation since May 2010. President of CVS/pharmacy since January 2007. Was Executive Vice President of CVS Caremark Corporation from January 2007 to May 2010; Executive Vice President - Stores of CVS Corporation from April 2000 to January 2007; and Executive Vice President - Stores of CVS Pharmacy, Inc. from March 1998 to January 2007. Currently Chairman, National Association of Drugs Stores.
Per Lofberg
Executive Vice President of CVS Caremark Corporation and President of Caremark Pharmacy Services
Per Lofberg, age 63, is President of Caremark Pharmacy Services, a position he assumed in January 2010. Previously, Mr. Lofberg was President and CEO of Generation Health. He is also the co-founder and served as CEO of Merck Capital Ventures; served as Chairman of Merck-Medco Managed Care LLC, which later became Medco Health Solutions; and, spent 15 years with Boston Consulting Group (BCG) in Boston, New York and Munich, West Germany. As President, he has responsibility for all facets of the PBM business.
Troyen A. Brennan, M.D., M.P.H.
Executive Vice President and Chief Medical Officer
Troyen A. Brennan, M.D., M.P.H, age 55, is Executive Vice President and Chief Medical Officer of CVS Caremark. Prior to joining CVS Caremark, Dr. Brennan was Chief Medical Officer of Aetna Inc. From 2000 to 2005, Dr. Brennan served as President and CEO of Brigham and Women's Physician's Organization. In his academic work, he was Professor of Medicine at Harvard Medical School, and Professor of Law and Public Health at Harvard School of Public Health. Dr. Brennan received his M.D. and M.P.H. degrees from Yale Medical School and his J.D. degree from Yale Law School. He completed his internship and residency in internal medicine at Massachusetts General Hospital. He is a member of the Institute of Medicine of the National Academy of Sciences.
David M. Denton
Executive Vice President and Chief Financial Officer of CVS Caremark Corporation
David M. Denton, age 45, is Executive Vice President and Chief Financial Officer of CVS Caremark Corporation, since January 2010. He previously held the position of Senior Vice President and Controller/Chief Accounting Officer of CVS Caremark Corporation, from March 2008 to December 2009; Senior Vice President, Financial Administration of CVS Caremark Corporation and CVS Pharmacy, Inc. from April 2007 until March 2008; Senior Vice President, Finance and Controller of PharmaCare Management Services, Inc., the Company’s pharmacy benefits management subsidiary, from October 2005 through April 2007. He has been with the Company since July 1999.
Lisa Bisaccia
Senior Vice President and Chief Human Resources Officer of CVS Caremark Corporation
Lisa Bisaccia, age 54, has been Senior Vice President and Chief Human Resources Officer of CVS Caremark Corporation since January 2010. She most recently served as Vice President of Human Resources. Since joining CVS Caremark in 2004, Mrs. Bisaccia has led major human resources initiatives including enhancing compensation practices, outsourcing human resources processing functions, and successfully managing all human resources support for the Retail business.
Douglas A. Sgarro
Executive Vice President and Chief Legal Officer of CVS Caremark Corporation and President of CVS Realty Co.
Douglas A. Sgarro, age 51, Executive Vice President and Chief Legal Officer of CVS Caremark Corporation and CVS Pharmacy, Inc. since March 2004 and President of CVS Realty Co., a real estate development company and a division of CVS Pharmacy, Inc. since October 1999; Senior Vice President and Chief Legal Officer of CVS Corporation and CVS Pharmacy, Inc. from September 1997 to March 2004. Mr. Sgarro is a graduate of Hamilton College and the University of Virginia Law School. He is a director of the United States Chamber of Commerce.
Jonathan C. Roberts
Executive Vice President and Chief Operating Officer, PBM
Jonathan C. Roberts, 54, is Executive Vice President of CVS Caremark, and Chief Operating Officer of the company’s PBM division, a position he has held since October 2010. Prior to that he served as EVP of Rx Purchasing, Pricing and Network Relations, from January 2009 to October 2010; Senior Vice President and Chief Information Officer of CVS Caremark Corporation from January 2006 until January 2009; Senior Vice President - Store Operations of CVS/pharmacy, Inc. from August 2002 until December 2005; and Area Vice President of Stores from April 1997 through August 2002.
Helena Foulkes
Executive Vice President and Chief Marketing Officer, CVS Caremark Corporation
Helena B. Foulkes, age 46, is the Executive Vice President and Chief Marketing Officer, CVS Caremark Corporation, a position she has held since January 2009. Previously, Ms. Foulkes was Senior Vice President of Health Services of CVS Pharmacy, Inc., from October 2007 through January 2009, Senior Vice President, Marketing and Operations Services from January 2007 through October 2007, and Senior Vice President, Advertising and Marketing from April 2002 to January 2007. In her fifteen-plus years with the Company, Ms. Foulkes has held positions in Marketing and Operations Services, Strategic Planning, Visual Merchandising and Category Management. She is a graduate of Harvard College and received an M.B.A. from Harvard Business School.
Stuart M. McGuigan
Senior Vice President and Chief Information Officer (CIO), CVS Caremark
Stuart M. McGuigan, age 52, is Senior Vice President and Chief Information Officer of CVS Caremark Corporation, a position he has held since December 2008. Previously, Mr. McGuigan was Senior Vice President and Chief Information Officer of Liberty Mutual Group from September 2004 to December 2008, and was Deputy Chief Information Officer and Senior Vice President of Liberty Mutual from February 2004 to September 2004; from 2000 to February 2004, Mr. McGuigan was Senior Vice President – Information Technology of Medco Health Solutions, Inc. He has served on the Board of Directors of NetScout, Inc. since 2005. In 2010, he was appointed to the Rhode Island Science and Technology Advisory Council (STAC).
Laird Daniels
Senior Vice President, Controller and Chief Accounting Officer of CVS Caremark Corporation
Laird Daniels, age 41, is Senior Vice President, Controller and Chief Accounting Officer of CVS Caremark Corporation, a position he assumed in January 2010. Previously, Mr. Daniels was Vice President of Finance and Retail Controller for CVS/pharmacy. He joined CVS Caremark in 1997.
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