CVS Health 1Q Profit, Sales Rise As U.S. Ramps Up Covid-19 Vaccinations
04 May 2021 - 9:17PM
Dow Jones News
By Dave Sebastian
CVS Health Corp. said its profit and sales rose for the latest
quarter, booking gains from inoculations as the U.S. stepped up its
rollout of Covid-19 vaccines.
The pharmacy and insurance giant on Tuesday posted net income
attributable to the company of $2.22 billion for the first quarter,
compared with $2 billion in the same period last year. Earnings
were $1.68 a share, compared with $1.53 a share in the year-ago
period.
Adjusted earnings were $2.04 a share, ahead of Wall Street
estimates.
CVS, rival Walgreens Boots Alliance Inc., as well as supermarket
chain Kroger Co. and Walmart Inc. have been pushing to get
consumers to visit their locations to receive vaccines. More than
40% of all U.S. adults have been fully vaccinated, according to the
Centers for Disease Control and Prevention data, and the daily
number of new Covid-19 cases has been declining. Governors across
the U.S. are now broadly rolling back restrictions implemented
during the pandemic.
Revenue rose 3.5% to $69.1 billion, just above the FactSet
consensus of $68.36 billion.
Same-store sales, or those at retail pharmacy stores that had
been operating for more than one year, rose 0.4%.
Revenue in the company's segment that fulfills medication
prescriptions and sells general products rose 2.3% to $23.27
billion, driven by higher Covid-19 testing and vaccinations.
Revenue in the pharmacy-services segment, which provides
pharmacy-benefit management services to employers, health plans,
government employee groups and government-sponsored programs, rose
3.8%, partly driven by new business.
Revenue in the healthcare benefits segment, which offers insured
and self-insured medical, pharmacy, dental and behavioral health
products and services, rose 6.7%, driven by growth in the
government services business, the company said. Medical membership
as of March 31 was 23.6 million, up 214,000 members from Dec. 31,
it said.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
May 04, 2021 07:02 ET (11:02 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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