CVS Health (NYSE:CVS) shares rose Wednesday after the company reported a huge jump in sales at its stores as customers rushed in to get prescriptions and other essentials during the coronavirus pandemic.
Same-store sales surged 9% during the quarter. CVS reported adjusted earnings per share of $1.91. Its revenue for the fiscal quarter increased 8.3% to $66.8 billion compared to $61.6 billion for the same period last year.
Net income rose to $2.01 billion, or $1.53 per share, in the quarter ended March 31, from $1.42 billion, or $1.09 per share, a year earlier.
Wall Street anticipated earnings per share of $1.63 cents on revenue of $64.01 million, based on a survey of analysts. However, they also say it’s difficult to compare reported earnings to analyst estimates as the pandemic disrupts typical shopping patterns and the global economy.
CVS did not change its financial outlook for 2020 earnings and cash, despite many other companies withdrawing them because of the pandemic.
The company said it expects its 2020 earnings to be between $7.04 to $7.17 per share, adjusted, and its cash flow to be between $10.5 billion to $11.0 billion.
According CEO Larry Merlo, "When facing any health crisis, including this pandemic, we’re uniquely positioned to understand consumer and patient needs and how to address them.
"This includes increasing access to medicine and virtual care, and testing thousands for the virus every day to ready our country to reopen safely."
CVS shares hiked $1.76, or 2.9%, to $62.97
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