CVS Health (NYSE: CVS) will close 22 "underperforming" drug stores early next year in addition to the 46 stores it shuttered earlier this year.
The company also reported third-quarter earnings that beat Wall Street’s estimates as its Aetna insurance business helped juice the company’s profit by 10%.
Earnings per share were reported at $1.84, adjusted, vs. $1.77 expected. Revenue was $63.81 billion vs. $62.99 billion expected
Details of the locations of the soon-to-be-closed stores weren’t immediately disclosed in the regulatory filing issued this morning.
The company recorded a $96-million impairment charge on its third-quarter earnings related to the 22 stores. It recorded a $135 million charge in the first quarter related to the 46 stores it closed during the second quarter.
Said CFO Eva Boratto, "We believe these decisions will generate enhanced longer term performance.
"Our real estate footprint remained very productive, and we will look for opportunities to further improve the performance in our portfolio.”
Drugstores are under threat as consumers buy more pharmacy items online and new competitors sell prescription drugs online. Rival Walgreens earlier this year said it would close 200 stores. Amid upheaval in the industry, CVS executives have said they do not expect "meaningful" store closures.
CVS reported net income of $1.53 billion, or $1.17 per share, up 10% from $1.39 billion, or $1.36 per share a year earlier. Excluding one-time items, such as a charge related to closing stores, CVS earned $1.84 per share, above the $1.77 per share expected by analysts
Shares climbed $2.18, or 3.2%, to $69.55
