CVS Health raises full-year forecast after beating second-quarter expectations

CVS Health raises full-year forecast after beating second-quarter expectations


People walk by a CVS Pharmacy store in the Manhattan borough of New York City.

Shannon Stapleton | Reuters

CVS Health on Wednesday lifted its earnings outlook for the year, after beating Wall Street’s expectations for the fiscal second quarter.

The health-care company said it now expects adjusted earnings per share for the full year to come in between $8.40 and $8.60, compared with its earlier estimate of between $8.20 and $8.40.

Shares rose about 3% in premarket trading.

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

  • Earnings per share: $2.40 adjusted vs. $2.17 expected
  • Revenue: $80.64 billion vs. $76.37 billion expected

On an unadjusted basis, CVS reported net income of $2.95 billion, or $2.23 per share, higher than the $2.78 billion, or $2.10 per share, a year earlier. Revenue of $80.64 billion likewise marked a year-over-year increase, up from $72.62 billion in the same period in 2021.

The results encompass CVS’s several different slices of the health-care business. It has a huge footprint of drugstores, owns insurer Aetna and pharmacy benefits manager CVS Caremark, and provides patient care through MinuteClinics inside of its stores.

CEO Karen Lynch said the company’s strategy of adding more health services is boosting sales and deepening customer relationships.

“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,” she said in a news release.

Same-store sales increased by 8% compared with the year-ago period, as customers bought Covid at-home test kits and cough, cold and flu medications. That far exceeded an expected drop in same-store sales of 0.3%, according to StreetAccount consensus estimates.

In the pharmacy, same-store sales rose 7.6%. In the front of the store, same-store sales jumped 9.4%.

Total pharmacy claims processed gained 3.9% on a 30-day equivalent basis for the three months ended June 30 compared with the prior year. That was driven by an extended cough, cold and flu season compared with the same quarter in 2021.

While sales increased for the quarter, CVS said in a news release that growth was partially offset by a decline in Covid tests and vaccinations, the introduction of new generic drugs and pressure on pharmacy reimbursements.

It did not report how many Covid shots and tests it administered in the three-month period.

Read the company’s earnings release here.

This is a developing story. Please check back for updates.



Source

Moderna cuts high end of 2025 revenue outlook on vaccine shipment delay in U.K.
Health

Moderna cuts high end of 2025 revenue outlook on vaccine shipment delay in U.K.

Moderna logo is seen in Warsaw, Poland on April 9, 2025. Jakub Porzycki | Nurphoto | Getty Images Moderna on Friday lowered the high end of its 2025 revenue outlook due to a delay in vaccine shipments to the U.K., but beat Wall Street’s expectations for the second quarter as it works to cut costs. […]

Read More
Trump says he asked 17 drugmakers to take steps to cut U.S. prices within 60 days
Health

Trump says he asked 17 drugmakers to take steps to cut U.S. prices within 60 days

U.S. President Donald Trump, U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr., Dr. Mehmet Oz, Administrator for the Centers for Medicare & Medicaid Services, David Sacks, AI & Crypto Czar and Amy Gleason, Acting Administrator, Department of Government Efficiency (DOGE) attend the “Making Health Technology Great Again” event in the East Room […]

Read More
Eli Lilly’s Mounjaro shows heart health benefits in head-to-head trial with older diabetes drug Trulicity
Health

Eli Lilly’s Mounjaro shows heart health benefits in head-to-head trial with older diabetes drug Trulicity

Mounjaro manufactured by Eli Lilly and Company packaging is seen in this illustration photo taken in a pharmacy in Krakow, Poland on April 9, 2024. Nurphoto | Nurphoto | Getty Images Eli Lilly on Thursday said its blockbuster diabetes drug Mounjaro showed heart health benefits in a late-stage trial directly comparing it to the company’s […]

Read More