CVS Health raises outlook as third quarter results beat estimates

by | Nov 2, 2022 | Business

Rafael Henrique | Lightrocket | Getty ImagesCVS Health reported third quarter earnings Wednesday morning that beat Wall Street’s expectations. Here’s how the pharmacy giant performed compared to Wall analysts’ estimates, according to Refinitiv:Earnings per share $2.09 vs. $1.99, expected.Revenue $81.16 billion vs. $76.75 billion, expected.It’s the third consecutive quarter in which CVS beat earnings expectations. Revenue rose 10% year-over-year.CVS’ Health Care Benefits segment grew nearly 10% compared to the same quarter last year, driven in part by an increase in its medical memberships from 2021. Pharmacy services revenue increased over 10% compared to the period last year, as total claims processed increased by more than 3.6%, with gains offest by a decline in Covid vaccinations.The retail and long-term care segment saw revenue increase nearly 7%, but its profit decreased due largely to a decline in demand for Covid tests and vaccines.The company on Wednesday also reported a $5.2 billion charge in the third quarter for a settlement relating to its role in the opioid crisis. According to CVS, the settlement resolves all existing claims against the company relating to opioid distribution.The company raised its full year outlook for the second consecutive quarter. Now, the company expects an adjusted earnings per share for the full year of between $8.55 and $8.65, up from the range of $8.40 to $8.60 that it announced in August atop healthy traffic and Covid-related anti-viral drug sales.Shares were up around 2% in premarket trading.CVS encompasses a large swath of health care services, including its prescription and over-the-counter medicine sales, its MinuteClinic patient care services and its pharmacy benefits manager, CVS Caremark. The company also owns Aetna, a managed health insurance company.The retailer has signaled a renewed focus on health care this quarter, announcing its purchase of Signify, an at-home health care company, for $8 billion in September. …

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