NEW YORK (TheStreet) --Pharmacy and healthcare retail giant CVS Health Corp. (CVS - Get Report) is scheduled to release its 2015 first quarter earnings results before the market open on Friday morning. Analysts are expecting that CVS will report a year-over-year rise in its earnings per share and revenue for the period.
The company has been forecast to post earnings of $1.08 per share on revenue of $35.96 billion for the quarter ended March 2015.
Shares of CVS are up by 0.27% to $100.94 in late morning trading on Thursday.
Last year, CVS said its adjusted earnings were $1.02 per share, a 22.5% rise from the same period the year before, and revenue grew by 6.3% to $37.2 billion for the 2014 first quarter.
In September of 2014 CVS announced it would no longer sell tobacco products in its stores, as is felt the sale of cigarettes conflicted with its health care mission.
Separately, TheStreet Ratings team rates CVS HEALTH CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CVS HEALTH CORP (CVS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CVS HEALTH CORP has improved earnings per share by 8.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CVS HEALTH CORP increased its bottom line by earning $3.96 versus $3.75 in the prior year. This year, the market expects an improvement in earnings ($5.16 versus $3.96).
- Net operating cash flow has significantly increased by 122.56% to $3,423.00 million when compared to the same quarter last year. In addition, CVS HEALTH CORP has also vastly surpassed the industry average cash flow growth rate of 30.49%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.02% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Food & Staples Retailing industry average. The net income increased by 4.4% when compared to the same quarter one year prior, going from $1,265.00 million to $1,321.00 million.
- You can view the full analysis from the report here: CVS Ratings Report