Tuesday, May 2, 2017

CVS profit declines but still beats Street

CVS Health Corp. reported lower profit in its first quarter amid pressure by more generic drugs and softer customer traffic.
 
Net revenues rose 3% to $44.5 billion, up from $43.2 billion in the year-ago period. Revenues in the retail/LTC segment decreased 3.8% to $19.3 billion amid reimbursement pressure. The decrease was largely driven by a 4.7% decline in same-store sales, continued reimbursement pressure and an increase in generics.  
 
Pharmacy same store sales decreased 4.7% and were negatively impacted by approximately 480 basis points due to recent generic introductions. Same-store prescription volumes declined 1.4%. Front store same-store sales declined 4.9%..  . . more

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