We all know how bad the first quarter was. One wall street analyst couldn't even believe those numbers were real. They said they had to do a double-take. So, if the 2nd Quarter is bad what are your thoughts on how bad the fall-out will be?
10 replies (most recent on top)
Karen and prem both need to go! Not sure which one is more useless, but we do know that prem sells his shares as quickly as he gets them and only cares about himself.
@2ojz+1tlhCm1N Well said! Shoplifting is rampant in stores to the point that it feels like CVS has given up. There are areas with multiple CVS’ within a few miles of each other, and with hours cuts and understaffing, some locations are struggling just to stay open. So yeah more closures are definitely possible. And yes poor decisions by senior management means the little guy at the bottom suffers.
I would not doubt they announce more store closings. I mean how can you keep operating so many stores with a CVS right down the street from another?
Plus how can they justify keeping stores pen where the theft is so bad it is losing money? Maybe so Prem can keep his travel miles growing
Just a guess but would not doubt another 1000 stores get closed
You know bad decisions by senior management, but the workers have to pay the price.
I’m guessing Karen “decides to step away to spend more time with her family” and the company axes 20k people instead of 10k
Expect worse...much worse. What do you think the folks that are currently enrolled underneath Aetna's Medicare Advantage plan are going to the rest of this year? Procedure, procedure, procedure...before they leave to another plan next year. They heard what the leaders said about pulling out of some markets and/or raising rates/reducing coverages...so, get what you can now.
This year is only going to get worse.
You give this management team too much credit...they aren't nearly that smart. Karen isn't believable nor does she project command of the business.
To the previous poster, cvs is NOT smart enough to do as you say. They like to play the smoke and mirrors game as to company conditions, and then when things go south, they scapegoat someone. In this case they scapegoated their own customers by blaming them for utilizing too many of our services.
The more I read all saying 2nd Quarter will be worse I wonder.
in the world of finance and stock prices you get slammed if you miss the analysts estimates. Think of it as you are punished as you didn't do what someone else forecast. Nobody says 'bad forecast' they say 'bad job'.
In general the analysts think in terms of this quarter, next quarter and the year. They have a very short view of a company.
So miss by a penny, miss by a dollar miss by $10 you get beaten up. If you are over it is 'ok good what now' and they expect more next time. Often companies open the closet and pull out all the old bad news and get it all out as they will be punished already.
What if CVS management is smart enough to have gotten all the bad news out and painted a realistic picture of the future?
@man+1tlhCm1N What do you think about the possibility of more store closures?
Doesn't matter they made their mind up. Layoffs in August.