CVS said it administered more than 28 million Covid vaccines and tests over the three months ending in December, helping retail and pharmacy sales post solid year-on-year gains.
CVS Health Corp. (CVS) – Get CVS Health Corporation Report posted stronger-than-expected third quarter earnings Wednesday as its retail division revenues got a solid boost from the 20 million Covid vaccinations its administered over the three months ending in December.
CVS said adjusted earnings for the three months ending in December were pegged at $1.98per share, up 52.3% from the same period last year and firmly ahead of the Street consensus forecast of $1.83 per share. Group revenues, CVS said, rose 10.1% from last year to $76.6 billion, again topping analysts’ estimates of a $75.55 billion tally.
Same sore sales were up 13.4% from last year, CVS said, while pharmacy store sales rose 11.8%, both benefiting from the group’s administering of 20 million Covid vaccinations and a further 8 million tests over the three month period.
Looking into the 2022 financial year, CVS made no changes to its December profit forecast which includes a target range of $8.10 to $8.30 per share and revenues of between $304 billion to $309 billion.
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“We’re engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health,” said CEO Karen Lynch. “That’s clearly reflected in our performance, but more importantly in our potential.”
CVS shares were marked 2.7% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $107.80 each, a move that would still leave the stock with a six month gain of around 33%.
Pharmacy Services revenues rose 8.2% to $39.34 billion, CVS said, Retail sales rose 12.6% to $24.1 billion, “primarily driven by increased prescription and front store volume, the administration of COVID-19 vaccinations and diagnostic testing, as well as brand inflation.”
The group’s healthcare benefits division saw sales rise 8.4% to $20.7 billion as it added Aetna’s operations to its legacy business.
