CVS Health had quite the fourth-quarter, posting via PR Newswire a profit climb of 13 percent as top executives forcast further gains from deals and acquisitions in the upcoming year. The results fell within Wall Street's earnings expectations, with the No. 2 U.S. drugstore reporting a net income increase of 13.4 percent to $1.5 billion, up from $1.32 billion in the last quarter of 2014, while earnings per share rose 26.5 percent to $1.53. Pharmacy claims and same-store sales followed suit, increasing 7.2 percent to 237.4 million and 3.5 percent compared to the year before, respectively.
The company also reiterated the earnings outlook it laid out in December for 2016 adjusted earnings of between $5.73 and $5.88 per share, though warned that first quarter sales could be slower than analysts estimate due to decreased traffic to its retail stores.
CVS' good news comes as it continues to bulk up its drug services offerings. Last year, it paid $12.9 billion for nursing-home pharmacy Omnicare, which has helped boost CVS Health's revenues in both pharmacy services and retail pharmacies during the fourth quarter by granting it national reach in dispensing prescription drugs to assisted living and skilled nursing homes, long-term care facilities, hospitals and other care providers.
It also bought the pharmacy locations inside Target for $1.9 billion and has begun rebranding those locations, starting with stores in North Carolina. The company expects the deal to mirror the gains seen with the Omnicare deal as it pushes East Coast-centric CVS Health's presence into several markets west of the Mississippi.
Despite the strong showing, shares of CVS Health were barely affected, only rising $1.19, or 1.3 percent, to $90.84 in midday trading Tuesday, while broader indexes fell slightly.
