People walk past a CVS Pharmacy store in the Manhattan borough of New York City.
Shannon Stapleton | Reuters
CVS Health on Wednesday raised its earnings outlook for the year after beating Wall Street expectations for the fiscal second quarter.
The health care company said it now expects full-year adjusted earnings per share to be between $8.40 and $8.60, compared with its previous estimate of between $8.20 and $8.40.
Shares rose about 2% in premarket trading.
Here’s what the company reported on the three-month period ended on June 30compared to what analysts expected, 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, up from $2.78 billion, or $2.10 per share, a year ago. Revenue of $80.64 billion also marked a year-over-year increase, from 72.62 billion dollars in the same period of 2021.
The results include several different parts of CVS’s healthcare business. It has a large pharmacy footprint, owns insurer Aetna and pharmacy benefit manager CVS Caremark, and provides patient care through MinuteClinics inside its stores.
CEO Karen Lynch said the company’s strategy to add more health services is increasing 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 press release.
Shares of CVS closed Tuesday at $95.37. The company’s shares are down about 8% so far this year.
This is a developing story. Please check back for updates.