CVS Health Corp. (CVS) – Receive reports posted higher-than-expected third-quarter earnings on Friday and raised its full-year profit outlook, as health care benefits sales and improves store traffic. , promote corporate profits.
The group also said that longtime CEO Larry Merlo, who has led the group since 2011, will retire in February next year and will be replaced by Karen Lynch, who currently runs the Aetna Healthcare division. Group.
CVS says adjusted earnings for the three months ending September are pegged at $ 1.66 per share, down nearly 10 percent year-on-year but far ahead of Street’s consensus forecast of 1, 33 USD / share. The group’s revenue rose 3.5 percent to $ 67.1 billion, CVS said, beating analysts’ estimates of $ 66.57 billion. Sales at similar stores, the company said, were up 5.7 percent year on year, more than double the Street consensus forecast.
Looking at the year-end months, CVS says it sees regional adjusted earnings from $ 7,335 to $ 7.45 per share, up from its previous forecast of $ 7.14 to $ 7.27 per share. Coupons and cash flows operate in the region from $ 11 billion to $ 12.75 billion. to 13.25 billion dollars.
“Our strong third quarter results show that continued long-term strategic planning is changing the way health care is delivered,” said Merlo. “As an integrated healthcare provider, we are developing comprehensive and innovative solutions that meet the needs of our customers in the community, at home or in the palm of their hand.”
He added: “Our comprehensive pandemic response demonstrates the power of an agile and diversified business. We have opened more than 4,000 COVID-19 test sites across the country since March and has managed more than six million trials. “We are helping businesses and universities reopen safely and we have recently been chosen to carry out COVID-19 vaccination in long-term care facilities. We will continue. plays an important role in the country’s recovery thanks to the tireless efforts of our nearly 300,000 people.
CVS shares were marked 3.1% higher in early trading shortly after the announcement of exchange earnings at $ 63.48 per share, pushing the six-month gain in the stock to around 5. , 5%.
CVS said Pharmacy Services revenue fell 0.85% to $ 35.7 billion due to “being driven by previously disclosed customer losses and continuing to be under price pressure, partially offset by growth in specialist pharmacy and brand inflation. ”
Retail sales increased by 5.9% to $ 22,725 billion, while in-store sales increased by 5.7%. The group’s healthcare benefits division saw revenue increase 8.8% to $ 18.7 billion as it added Aetna’s operations to its legacy business.