Why CVS Stock Popped While the Market Flopped Today
The stock of pharmacy chain store operator CVS Health (NYSE: CVS) was the very picture of health on Wednesday. Investors traded the company's shares up by more than 3% in price on an otherwise gloomy day for the market overall. That wasn't really a surprise, as CVS posted better-than-expected results for its latest quarter.
Well before market open, CVS published its second-quarter figures. These revealed that the sprawling retailer booked just over $88.9 billion in revenue for quite a robust year-over-year increase of more than 10%. On the other hand, the company's generally accepted accounting principles (GAAP) net income fell by 37% to $1.9 billion, which shook out to a non-GAAP (adjusted) per-share figure of $2.21.
CVS explained its top-line improvement to growth in all of its business segments. As for that slide in profitability, the company said this was due to weakness in two facets of its operations, healthcare benefits and pharmacy/consumer wellness.
Source Fool.com
