Latest News

CVS Health beats on earnings, gets lift from Covid vaccines and prescription volumes

0

A customer walks towards the entrance of a CVS Health Corp. store in downtown Los Angeles, California, U.S., on Friday, Oct. 27, 2017.

Christopher Lee | Bloomberg | Getty Images

CVS Health on Wednesday beat expectations for fiscal third-quarter earnings as the company got a boost from filling more prescriptions and giving more Covid-19 vaccines.

The drugstore chain and health insurer raised its forecast for the year, saying it expects adjusted earnings per share of $7.90 to $8.00, from $7.70 to $7.80. Before adjustments, however, that guidance was revised downward to between $6.13 to $6.23 from $6.35 to $6.45 previously.

Shares of the company fell less than 1% in premarket trading.

Here’s what the company reported for the three-month period ended Sept. 30, compared with what analysts were expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $1.97 adjusted vs. $1.78 expectedRevenue: $73.79 billion vs. $70.49 billion expected

CVS sales got a lift as consumers came to stores for Covid-19 tests and vaccines. The company said it administered more than 8 million tests and more than 11 million shots during the three-month period.

Pharmacy volumes have also normalized compared to a year ago, as people go to the doctor office more regularly and get new prescriptions. Total pharmacy claims processed increased 5.3% on a 30-day equivalent basis during the quarter versus the year-ago period, when Covid vaccines were excluded. That rose to nearly 7% when including vaccines.

CVS reported third-quarter net income of $1.59 billion, or $1.20 per share, down from $1.22 billion, or 93 cents per share, a year earlier.

Excluding items, it earned $1.97 per share, more than the $1.78 per share expected by analysts surveyed by Refinitiv.

Total revenues for the three-month period jumped by about 10% to $73.79 billion from $67.06 billion a year earlier, outpacing expectations of $70.49 billion.

As of Tuesday’s close, shares of CVS were up about 33% this year. Shares touched a 52-week high on Tuesday, but closed at $91.15. The company’s market value is $120.28 billion.

Read the company’s press release here.

Major firms downgrade Avis after stock doubles in single day, saying fundamentals no longer matter

Previous article

Mortgage rates fell slightly, but weekly refinance demand couldn’t recover

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News