People walk by a CVS Pharmacy store in Manhattan, New York City.
Shannon Stapleton | Reuters
CVS Health Wall Street raised its earnings guidance for the year on Wednesday after beating expectations for the second quarter.
The healthcare company expects full-year adjusted earnings per share of $8.40 to $8.60, compared with $8.20 to $8.40 previously.
The stock was up about 4% in pre-market trading.
Here’s what the company reported: 3 months until June 30thbased on analyst research by Refinitiv, compared to what analysts expected:
- Earnings per share: Adjusted $2.40 vs $2.17 expected
- Revenue: $80.64 billion vs. $76.37 billion forecast
On an unadjusted basis, CVS reported net income of $2.95 billion. or $2.23 per share, That’s up from $2.78 billion a year ago, or $2.10 per share. Revenue of $80.64 billion similarly increased year over year. $72.62 billion in the same period in 2021.
The results include several different parts of CVS’ healthcare business. With a huge footprint of drugstores, he owns his Aetna, an insurance company, and his CVS Caremark, a pharmacy benefits manager, providing patient care through in-store MinuteClinics.
CEO Karen Lynch said the company’s strategy of adding more health services is boosting sales and deepening customer relationships.
“Despite the challenging economic environment, our differentiated business model supported strong performance in the quarter, with significant revenue growth across all business segments,” she said in a news release. I was.
Same-store sales were up 8% year-over-year, thanks to customers who purchased home coronavirus test kits and cough, cold and flu medicine. According to StreetAccount’s consensus estimate, this is well above the projected 0.3% decline in same-store sales.
Same-store sales at dispensing pharmacies increased 7.6%. Existing store sales increased by 9.4%.
Total pharmacy claims processed for the three months ended June 30 increased by 3.9% year-on-year on a 30-day basis. This is due to a longer cough, cold and flu season compared to the same quarter in 2021.
Sales increased in the quarter, but CVS said in a news release that growth was partially offset by lower Covid testing and vaccinations, the introduction of new generic drugs and pressure on pharmacy reimbursements.
CVS conducted more than 4 million Covid tests and about 6 million Covid vaccinations in three months, Lynch said on the earnings call. That’s down from over 6 million tests and his over 8 million shots. It will be administered in Q1.
However, one aspect of Covid care is on the rise. Lynch said the demand for antiviral drugs to treat Covid infections continues to grow.
Pandemic-related services are still big business for CVS, even with reduced testing and vaccination volumes.
Chief Financial Officer Sean Gartin said the company expects to administer about 20 million doses of Covid vaccines this year, of which about 75% have already been vaccinated. 10,000 tests and plans to sell over 50 million over-the-counter test kits. That’s more than double his sales in the previous year.
Combined, these three categories are expected to generate about $3 billion in revenue, down about 33% year-over-year. He said CVS is ready to spend more later this year to prepare for a potential spike in his Covid cases.
Read the company’s earnings release here.
This is a developing story. Please check the latest information.