The retail pharmacy and pharmacy benefit manager announced Thursday that it expects to bring in adjusted earnings per share to land somewhere between $5.77 and $5.93 in 2017. Consensus estimates for adjusted earnings per share were around $5.87.
CVS also announced that its board approved an 18% increase in its annual dividend in 2017, which translates to $2 per share, up 30 cents per share over 2016. This is the fourteenth year in a row that the company has boosted its dividend.
Despite the positive news, CVS share prices fell in pre-market trading. Shares fell 1.7% ahead of market's open, hitting $77.61 apiece.
Company officials highlighted CVS' diversified lines of business as a way to manage the changes Republicans and President-elect Donald Trump have threatened to the current healthcare system.
"Given the recent changes in the marketplace and our outlook for 2017, we have put a plan in place to return to more robust levels of growth," the company's CFO Dan Denton said in a statement.
Denton also commented on CVS' strategy for M&A in 2017.
"We've always talked about the fact that our business model is to grow organically, but to supplement growth with acquisitions," CFO Dan Denton said during the company's investor day.
CVS has a market cap of $84.21 billion. The company's investor day began at 8 a.m. Thursday and will continue throughout the morning.