CVS Health (NYSE:CVS) on Wednesday lifted its earnings outlook for the year, after beating Wall Street’s expectations for the fiscal second quarter.
The health-care company said it now expects adjusted earnings per share for the full year to come in between $8.40 and $8.60, compared with its earlier estimate of between $8.20 and $8.40.
On an unadjusted basis, CVS reported net income of $2.95 billion, or $2.23 per share, higher than the $2.78 billion, or $2.10 per share, a year earlier. Revenue of $80.64 billion likewise marked a year-over-year increase, up from $72.62 billion in the same period in 2021.
The results encompass CVS’s several different slices of the health-care business. It has a huge footprint of drugstores, owns insurer Aetna and pharmacy benefits manager CVS Caremark, and provides patient care through MinuteClinics inside of its stores.
CEO Karen Lynch said the company’s strategy of adding more health services is boosting sales and deepening customer relationships.
Total pharmacy claims processed gained 3.9% on a 30-day equivalent basis for the three months ended June 30 compared with the prior year. That was driven by an extended cough, cold and flu season compared with the same quarter in 2021.
While sales increased for the quarter, CVS said in a news release that growth was partially offset by a decline in COVID tests and vaccinations, the introduction of new generic drugs and pressure on pharmacy reimbursements.
CVS shares grew $4.48, or 4.7%, to $99.85.
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