Table of Contents
WOONSOCKET, R.I. — CVS Health easily beat analysts’ projections for second quarter sales and earnings, and raised its full-year profit outlook. The company posted adjusted earnings per share of $2.40, topping Wall Street’s average forecast of $2.17. Net income was $2.96 billion, or $2.23 per share, up from $2.79 billion, or $2.10 per share, a year earlier.
Revenue in the period ended June 30 climbed 11% to $80.64 billion, exceeding the expected $76.37 billion.
The company now projects adjusted earnings per share for the year of between $8.40 and $8.60. It had earlier predicted $8.20 to $8.40.
“Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments,” said president and chief executive officer Karen Lynch. “The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care. We remain a trusted community health destination for millions of individuals with health products and services that engage customers in all aspects of their health wherever and whenever they need it.”
In the Retail/LTC segment, revenue increased 6.3% to $26.3 billion, primarily driven by increased prescription and front-store volume, including the sale of COVID-19 over-the-counter test kits and the impact of an extended cough, cold and flu season, as well as pharmacy brand inflation. These increases were partially offset by decreased COVID-19 vaccinations and diagnostic testing, the impact of recent generic introductions and continued pharmacy reimbursement pressure.
Prescriptions filled rose 1.6% on a 30-day equivalent basis, mainly driven by increased utilization and the impact of an extended cough, cold and flu season, partially offset by decreased COVID-19 vaccinations. Excluding the impact of COVID-19 vaccinations, prescriptions filled increased 4.6% on a 30-day equivalent basis.
In the Pharmacy Services segment, total revenues increased 11.7% to $42.8 billion.
