They are the nation’s largest retail pharmacy chain, with approximately 6,200 stores across 38 states. Add Caremark into the mix and you’ve got yourself one mammoth drug related services company that totals to a $55 billion market cap.
CVS/Caremark Corporation (CVS) reports tomorrow and it’s the first time it is doing so since CVS and Caremark have merged. It wasn’t a quiet merger, investors and shareholders on both sides have been screaming foul play by directors Roger L. Headrick and C.A. Lance Piccolo. Anytime you get takeover bids that go for around $27 billion, you get to see the color of all possible human emotions, just like a full rainbow after a rainy afternoon. So will it be all smiles and rainbows after tomorrow’s conference call?
William Blair analyst at Mark Miller is saying CVS will report Q1 earnings of 47 cents per share which is 2 cents ahead of analysts’ consensus estimate. He has a market perform rating on the stock and to get more insight into tomorrow’s call read a great article by Melissa Davis from TheStreet.com
What investors, shareholders and Wall Street want to know is can CVS/Caremark pull of a win for the team tomorrow?
The stakes couldn’t be higher, after all the pain this merger has caused – was it all worth it? Shares of CVS/Caremark are trading just $1 away from its 52-week high at around $36. With all the drama surrounding CVS I would rather wait to make a play until after the dust has settled. What I want to know is now that the two companies have joined forces, can they reduce their operating expenses and most important, what is the plan for the future?
Now that they have become the Wal-Mart (WMT) of the drug world, can this aircraft carrier of drug services make the stock price sail or will it just sink?
Frank Lara Jr.
Frank Lara Jr. can be reached at [email protected]; he does not own securities in the companies he covers.
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