CVS 4Q14 Earnings Call Notes

posted in: Notes | 0

Each week I read dozens of transcripts from earnings calls and presentations as part of my investment process. Below are some of the most important quotes about the economy and industry trends from the transcripts that I read this week. Full notes can be found here.

10% revenue growth

“We delivered approximately 10% growth in consolidated revenues, 14% growth in PBM operating profit, 8% growth in retail operating profit and 13.5% growth in adjusted earnings per share on a comparable basis.”

Clients are focused on controlling specialty costs

“many of you have asked what our clients are focused on, and the number one priority centers on controlling their rapidly rising specialty costs. And we’re bringing them an array of differentiated solutions. ”

Script volumes up 5.3% including share gain

“Pharmacy same-store prescription unit volumes increased 5.3% on a 30 day equivalent basis and we continue to gain pharmacy share. Our retail pharmacy market-share was 21.1% in Q4 and that’s up about 55 basis points versus the same quarter a year ago.”

Front store comps 0.7% excluding tobacco

“Turning to the front store, we saw continued decrease in traffic. That was partially offset by an increase in the average customer basket. Our front store comps were down 7.2% and adjusting for the tobacco impact, front store comps would have been up 0.7%. The impact of the tobacco exit was about 800 basis points and that’s about 100 basis points less than we anticipated. So again four months into it, it’s still early but we’re very pleased with these results.’