CVS Health Corporation (NYSE: CVS)
CVS Health Corp. announced its financial results for the June quarter before the markets opened on Thursday.
The pharmacy benefits manager and drugstore operator surpassed Wall Street revenue and earnings estimates, thanks to a surge in pharmacy revenue during the quarter.
CVS stock has gone down almost 10% year to date, while the S&P 500 index has gained nearly 7%.
The stock has dropped 17% in the last twelve months. After the announcement of the results, the shares added $2.47, or 3.77% to trade at $67.92 in the early hours of regular trading.
CVS Earnings & Outlook
The drugstore chain reported a second-quarter net loss of $2.56 billion, or $2.52 per diluted share. In the same period last year, the company had a net income of $1.10 billion, or $1.07 per diluted share.
Adjusted for special items, including a goodwill impairment charge of $3.9 billion for its long-term care business, earnings came in at $1.69 per share.
Total revenue during the quarter was $46.71 billion, an increase of 2.2% from the year-ago quarter. Thompson Reuters, based on analyst forecasts, had modeled adjusted earnings per share of $1.61 on 46.35 billion in sales.
Its retail segment recorded sales of $20.7 billion, an increase of 5.7% from the earlier-year quarter, pushed by pharmacy sales rise of 8.3%. Front-end sales grew by 0.2%.
For the full year, the Rhode Island-based company expects adjusted earnings in the range of $6.98 to $7.08 per share, from its earlier guidance of $6.87 to $7.08 per share.
CVS Health CEO Comments
“Our solid performance both in the quarter and year-to-date demonstrates our ability to drive value. It also builds upon a strong foundation for a seamless integration of CVS and Aetna with one goal: to transform the consumer health care experience and, by doing so, deliver long-term profitable growth for shareholders,” commented Larry Merlo, President and Chief Executive Officer of CVS Health Corporation.
“The strong revenue, adjusted EPS, gross and operating margins, along with cash flow generated in the quarter were the direct result of our team’s ability to increase prescription growth by expanding relationships with PBMs and health plans as well as our ongoing streamlining efforts and innovation. The genuine enthusiasm and the depth of talent throughout the CVS and Aetna organizations will be key assets as we focus on realizing the potential of our combination,” concluded Merlo.
CVS Health Corporation Company Profile
CVS Health Corporation is engaged in the provision of health care services. The company operates through the following segments: Retail or Long Term Care, Pharmacy Services, and Corporate.
The Retail or Long Term Care segment is involved in the sale of prescription drugs and assortment of general merchandise.
Its Pharmacy Services segment provides pharmacy benefit management solutions.
Under the Corporate segment, the company provides administrative and management services.
The company was founded in 1963 by Ralph Hoagland and Stanley P. Goldstein. Its headquarters are based in Woonsocket, Rhode Island. –CNN