What to Look For in the CVS Health Q2 Report

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CVS Health Corp. (NYSE: CVS) is scheduled to release its second-quarter financial results before the markets open on Wednesday. The consensus analyst estimates from Thomson Reuters are $1.61 in earnings per share (EPS) and $46.34 billion in revenue. The same period of last year reportedly had $1.33 in EPS and $45.69 billion in revenue.

Aetna and CVS are closing in on finalizing the acquisition of the latter, and the companies already have announced the management team going forward. Ultimately, Aetna will operate as a stand-alone business unit within CVS, and it will be led by members of its current management team.

The companies also noted that members of both the Aetna and CVS Health management teams will play significant roles in the newly combined company.

The transaction is expected to close in the second half of 2018 and is subject to regulatory approvals. Until the close of the transaction, CVS Health and Aetna will continue to operate as two separate companies.

Excluding Tuesday’s move, CVS has underperformed the broad markets, with the stock down over 16% in the past 52 weeks. In just 2018 alone, the stock is down 10%.

A few analysts weighed in on CVS prior to the release:

  • Citigroup has a Buy rating with an $81 price target.
  • Morgan Stanley has an Overweight rating and an $80 target.
  • Mizuho has a Buy rating.
  • Loop Capital has a Hold rating with a $68 price target.
  • RBC has an Outperform rating with an $84 price target.

Shares of CVS were last seen up nearly 1% at $65.54 on Tuesday, with a consensus analyst price target of $85.89 and a 52-week trading range of $60.14 to $84.00.