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Tuesday, May 24, 2022

CVS raises forecast for 12 months, as first-quarter earnings high expectations

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A CVS Pharmacy retailer is seen within the Manhattan borough of New York City, New York.

Shannon Stapleton | Reuters

CVS Health on Wednesday outpaced Wall Street’s expectations for first-quarter earnings and raised its steerage for the 12 months, because it noticed demand for at-home Covid exams, prescriptions and extra.

The health-care firm mentioned it now expects adjusted earnings per share for 2022 to vary from $8.20 to $8.40 in contrast with its earlier forecast of between $8.10 to $8.30.

Shares have been up greater than 1% in premarket buying and selling.

Here’s what the corporate reported for the three-month interval ended March 31, in contrast with what analysts have been anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.22 adjusted vs. $2.15 anticipated
  • Revenue: $76.83 billion vs. $75.39 billion anticipated

The health-care firm reported web revenue of $2.31 billion, or $1.74 per share, greater than the $2.22 billion, or $1.68 per share, a 12 months earlier.

Excluding objects, CVS earned $2.22 per share, greater than the $2.15 per share anticipated by analysts surveyed by Refinitiv.

Revenue elevated to $76.83 billion from $69.1 billion a 12 months earlier. That topped/fell in need of analysts’ expectations of $75.39 billion.

Customers have turned to CVS drugstores throughout pandemic, searching for Covid exams and vaccines. Now, the corporate is concentrated on different methods to attract foot site visitors, drum up enterprise and stem competitors from on-line retailers. It has added extra health-care companies to its shops and inspired members of its medical insurance enterprise, Aetna, to go to its drugstores for medical care.

In the primary quarter, CVS noticed declining demand for pandemic-related companies. It administered greater than 6 million Covid exams and greater than 8 million Covid vaccines within the three-month interval. That compares to greater than 8 million Covid exams and greater than 20 million Covid vaccines within the fourth quarter.

As of Tuesday’s shut, shares of CVS are down about 7% thus far this 12 months, outperforming the 12% decline of the S&P 500. Shares closed Tuesday at $95.98, bringing the corporate’s market worth to $126.04 billion.

Read the corporate’s press launch right here.

This story is growing. Please test again for updates.


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