What to Watch for When CVS Health (CVS) Posts Q3 Earnings

NEW YORK (TheStreet) -- Shares of CVS Health  (CVS)  were higher in mid-afternoon trading on Friday as the pharmacy company is slated to report 2016 third quarter results before Tuesday's opening bell. 

Wall Street is expecting earnings and revenue to rise year-over-year during the quarter. 

Analysts surveyed by FactSet are looking for adjusted earnings of $1.57 per share on revenue of $45.3 billion. 

During the same period in 2015, Woonsocket, RI-based CVS posted adjusted earnings of $1.28 per share on revenue of $38.6 billion. 

Additionally, CVS announced yesterday that it's planning to cut 600 corporate jobs in Rhode Island, Illinois and Arizona over the next two months, according to the Wall Street Journal

The company didn't say which divisions will be affected by the cuts but added that the decision was made in response to "changing market dynamics" and an "increasingly competitive environment."

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

The team rates CVS as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and reasonable valuation levels. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: CVS

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