CVS Caremark Earnings Are on Deck

CVS Caremark (NYSE: CVS  ) is expected to report Q4 earnings on Feb. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict CVS Caremark's revenues will increase 10.0% and EPS will grow 23.6%.

The average estimate for revenue is $31.14 billion. On the bottom line, the average EPS estimate is $1.10.

Revenue details
Last quarter, CVS Caremark logged revenue of $30.23 billion. GAAP reported sales were 13% higher than the prior-year quarter's $26.67 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.85. GAAP EPS of $0.79 for Q3 were 22% higher than the prior-year quarter's $0.65 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 18.7%, 70 basis points worse than the prior-year quarter. Operating margin was 6.0%, 10 basis points better than the prior-year quarter. Net margin was 3.3%, about the same as the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $122.89 billion. The average EPS estimate is $3.40.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,685 members out of 1,750 rating the stock outperform, and 65 members rating it underperform. Among 458 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 447 give CVS Caremark a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CVS Caremark is outperform, with an average price target of $52.36.

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