CVS Posts Higher Quarterly Profit
By Dave Sebastian
CVS Health Corp. said its profit and sales rose for the latest
quarter, partly driven by gains from the rollout of Covid-19
vaccines in the U.S. while it saw broader increases in other
The pharmacy and insurance company on Tuesday said revenue in
the segment that fulfills medication prescriptions and sells
general products rose 2.3% to $23.27 billion, driven by higher
Covid-19 testing and vaccinations. Partly offsetting the gains was
lower front-store revenue, which saw an acceleration of demand in
March 2020 as consumers prepared for the pandemic and a weak cough,
cold and flu season, CVS said.
The company posted revenue of $69.1 billion, up 3.5% and beating
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%.
Shares rose about 3% in premarket trading.
CVS, along with rival Walgreens Boots Alliance Inc., 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
Centers for Disease Control and Prevention data, and the daily
number of new Covid-19 cases have been declining. Governors across
the U.S. are now broadly rolling back restrictions implemented
during the pandemic.
Net income totaled $2.22 billion for the first quarter, up from
$2 billion in the same period last year. Adjusted earnings were
$2.04 a share, ahead of Wall Street estimates.
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% to $36.32 billion.
Revenue in the healthcare benefits segment, which offers insured
and self-insured medical, pharmacy, dental and behavioral health
products and services, rose 6.7% to $20.48 billion, driven by
growth in the government services business, the company said.
For 2021, CVS said it sees earnings of $6.24 to $6.36 a share,
or $7.56 to $7.68 a share on an adjusted basis. It previously
expected earnings of $6.06 to $6.22 a share, or $7.39 to $7.55 a
share on an adjusted basis.
CVS is expected to provide more details on its vaccine
distribution on its conference call at 8 a.m. ET.
Write to Dave Sebastian at email@example.com
(END) Dow Jones Newswires
May 04, 2021 07:43 ET (11:43 GMT)
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