CVS Health (NYSE:CVS) opened higher, on Wednesday as the company reported second-quarter earnings and revenue that beat expectations, as the company slashes costs and lays off thousands of employees.
CVS has implemented a cost-cutting program as it pushes deeper into health-care services in the wake of its $8 billion acquisition of Signify Health and its $10.6-billion purchase of Oak Street Health.
Part of that effort calls for cutting 5,000 jobs.
Earnings per share for the second quarter registered at $2.21 adjusted, vs. $2.11 expected, on revenue of $88.9 billion, vs. $86.5 billion expected
The health-care giant posted net income of $1.91 billion for the quarter, or $1.48 per share, a 37% decline from the same period in 2022 when CVS reported net income of $3.04 billion, or $2.29 per share. Excluding one-time items, CVS reported $2.21 per share for the period.
The company booked revenue of $88.9 billion for the quarter, a 10% increase compared with the year-ago period.
CVS maintained its full-year adjusted earnings guidance of $8.50 to $8.70 per share, after slashing its projections by 20 cents last quarter due to costs associated with its recent acquisitions.
The company’s health services segment generated $46.22 billion in revenue, a 7.6% increase compared with the same quarter in 2022. The division includes the pharmacy benefit manager CVS Caremark and health-care services delivered in medical clinics, via telehealth and at home.
CVS shares climbed $1.33, or 1.8%, to $75.28.
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