CVS Health (NYSE:CVS) on Wednesday reported a strong second quarter and raised its outlook for the year, saying it is better positioned to weather the pandemic because of its diverse business, which includes its large drugstore chain and health benefits.
The health-care company beat analysts’ expectations for earnings and revenue in the fiscal second quarter.
Said CEO Larry Merlo, "The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offerings and the ability to deliver care to consumers in the community, in the home and in the palm of their hand which has never been more important."
The drugstore chain reported fiscal second-quarter net income of $2.98 billion, or $2.26 per share, up from $1.94 billion, or $1.49 per share, a year earlier.
Excluding items, CVS earned $2.64 per share, higher than the $1.93 cents per share expected by analysts.
Revenue rose 3% to $65.3 billion, from $63.43 billion a year prior. It also outpaced the $64.23 billion expected by analysts.
CVS raised its outlook for the year. It expects earnings of $5.59 to $5.72 per share. After adjustments, it said it expects to earn between $7.14 and $7.27 per share, up from a prior forecast of $7.04 to $7.17 per share.
During the pandemic, CVS has set up and operated COVID-19 testing sites. The company said it’d opened more than 1,800 test sites at drive-thru locations to date, which it runs in coordination with federal, state and local officials.
Shares added 1.5 cents to $64.995 in early Wednesday trading.
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