The CVS Pharmacy store is located in the Manhattan neighborhood of New York, New York.
Shannon Stapleton Reuters
CVS Health on Wednesday surpassed Wall Street’s expectations for first-quarter earnings and raised its guidelines for the year as it saw demand for Covid tests at home, recipes and more.
The health company said it now expects adjusted earnings per share for 2022 to range from $ 8.20 to $ 8.40 compared to its previous forecast of between $ 8.10 and $ 8.30.
Shares rose more than 1% in pre-market trading.
Here is what the company reported for the three-month period ended March 31, compared to what analysts had expected, based on a survey by analysts at Refinitiv:
- Earnings per share: $ 2.22 adjusted compared to $ 2.15 expected
- Revenue: $ 76.83 billion versus the expected $ 75.39 billion
The health company reported net income of $ 2.31 billion, or $ 1.74 per share, higher than $ 2.22 billion, or $ 1.68 per share, a year earlier.
Excluding the elements, CVS earned $ 2.22 per share, more than the $ 2.15 per share expected by analysts polled by Refinitiv.
Revenue rose to $ 76.83 billion from $ 69.1 billion a year earlier. This exceeded / dropped analysts’ expectations of $ 75.39 billion.
Customers turned to CVS drugstores during the pandemic, looking for Covid tests and vaccines. The company is now focused on other ways to drive traffic, stimulate business and restrict competition from online retailers. He added more health services to his stores and encouraged members of his health insurance business, Aetna, to go to his health care pharmacies.
In the first quarter, CVS saw a drop in demand for pandemic-related services. Over the three-month period, she administered more than 6 million Covid tests and more than 8 million Covid vaccines. This compares to more than 8 million Covid tests and more than 20 million Covid vaccines in the fourth quarter.
Sales at the same store in CVS increased by 10.7% in the first quarter compared to a year ago. In the pharmacy sales in the same store increased by 10.1%, and in the previous store sales in the same store increased by 13.2%.
As of Tuesday’s close, CVS shares fell about 7 percent so far this year, outpacing the 12 percent decline in the S&P 500. Shares closed at $ 95.98 on Tuesday, bringing the company’s market value to $ 126.04 billion.
Read the company’s press release here.
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