CVS Health (NYSE:CVS) on Wednesday beat expectations for third-quarter earnings and raised its outlook for the year, as it got a boost from filling more prescriptions and giving more COVID-19 vaccines.
The drugstore chain and health insurer said it now expects 2021 adjusted earnings per share to range between $7.90 and $8.00, up from $7.70 to $7.80.
However, the company was weighed down from several expenses, including integration costs related to the acquisition of Aetna and a goodwill impairment charge associated with its long-term care business. Its guidance for earnings per share before adjustments was lowered to between $6.13 and $6.23 from $6.35 to $6.45 previously.
CVS reported third-quarter net income of $1.59 billion, or $1.20 per share, down from $1.22 billion, or 93 cents per share, a year earlier.
Excluding items, it earned $1.97 per share, more than the $1.78 per share expected by analysts.
Total revenues for the period jumped by about 10% to $73.79 billion from $67.06 billion a year earlier, outpacing expectations of $70.49 billion.
CVS sales got a lift as consumers came to stores for COVID-19 tests and vaccines. The company said it administered 8.5 million tests and 11.6 million shots during the three-month period. That’s a slight drop from the previous quarter, when it gave 17 million vaccines — but its testing increased from more than six million.
CVS shares $2.98, or 3.3%, to $94.13
