CVS Health earnings top estimates as pharmacy sales get a lift from Covid testing, vaccines

People stroll by a CVS Pharmacy retailer within the Manhattan borough of New York City.

Shannon Stapleton | Reuters

CVS Health‘s fourth-quarter earnings beat Wall Street’s expectations as its pharmacy sales acquired a lift from offering Covid-19 testing and vaccines.

Shares of the corporate are up almost 2% in premarket buying and selling.

Here’s what the corporate reported for the fiscal fourth quarter ended Dec. 31, in contrast with what analysts have been anticipating, based mostly on a survey of analysts by Refinitiv:

  • Earnings per share: $1.30, adjusted, vs. $1.24 anticipated
  • Revenue: $69.55 billion vs. $68.75 billion anticipated

The drugstore chain reported fiscal fourth-quarter internet revenue of $975 million, or 75 cents per share, down from $1.74 billion, or $1.33 per share, a yr earlier.

Excluding gadgets, it earned $1.30 per share, outpacing the $1.24 per share anticipated by analysts surveyed by Refinitiv.

Revenue rose to $69.55 billion, from $66.89 billion a yr prior. That’s greater than analysts’ expectations of $68.75 billion, in line with Refinitiv.

Same-store sales grew 5.3% in the course of the three-month interval in contrast with the identical time a yr prior. They jumped by 7.5% within the pharmacy division, as prescription quantity rose, however have been down by 1.8% within the entrance of retailer, as prospects skipped visits and didn’t want to purchase as a lot flu and chilly remedy in the course of the pandemic.

CVS gives Covid-19 testing at lots of its shops. The firm mentioned it is administered about 15 million assessments nationwide. It’s additionally given greater than Three million Covid vaccines in over 40,000 long-term care services. The drugstore chain and its competitor, Walgreens, struck a take care of the federal authorities in October to offer the pictures to workers and residents at nursing houses and assisted residing services. It started vaccinations on the services in December.

CVS is now taking up an expanded function in offering Covid vaccines at its shops. Last week, the federal authorities shipped doses on to retail pharmacies’ shops — together with CVS shops in 11 states.

CVS Chief Executive Karen Lynch mentioned the pharmacy chain will step up its deal with providing a wider vary of health-care providers, past simply filling prescriptions.

“Our goal is to make health care more accessible, more affordable and simpler,” she mentioned in a information launch. “In order to do this, we will accelerate the pace of our progress through targeted investments in key areas that will drive our consumer-focused strategy.”

As of market shut on Friday, CVS shares are up lower than 1% over the previous yr. The firm’s inventory, which has a market worth of $97.13 billion, touched a 52-week excessive of $77.23 in mid-January. It closed at $74.21 on Friday.

Read the complete press launch right here.

This story is creating and will probably be up to date.

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