On a per-share basis, CVS saw a loss of 37 cents, which equated to $2.14 per share. This still beat analyst estimates of $2.05 per share.
The loss was attributed to a $2.2 billion goodwill impairment charge on the company’s long-term care business, Omnicare, as well as its takeover of insurer Aetna, which was finalized in the fourth quarter.
In the fourth quarter, CVS saw revenues increase 12.5 percent year-over-year to $54.4 billion. Analysts expected $54.58 billion. Same-store sales grew 5.7 percent in the fourth quarter from the same period one year earlier. Pharmacy drove most of the growth, with sales increasing 7.4 percent from the year prior.
For the full year of 2018, CVS posted a net loss of $596 million loss and $0.57 loss on earnings per share for the entire year.
For 2019, CVS forecasts earnings per share from continuing operations in the range of $4.88 to $5.08. The retail giant expects adjusted earnings of $6.68 to $6.88 per share, well below the $7.41 per share analysts polled by Refinitiv expected. The company expects revenue to reach between $249.86 billion and $254.29 billion.
“2019 will be a year of transition as we integrate Aetna and focus on key pillars of our growth strategy,” said CVS CEO Larry Merlo. “We are fully aware of the need to address the impact of certain headwinds that are having a disproportionate impact in 2019.”
More articles on pharmacy:
23andMe wants to become a drug company, has 13 drugs in its pipeline: 5 notes
J&J CEO on partnership with Apple: ‘We’re going to save lives’
Medicare would pay for CAR-T therapy under new proposal
