CVS Health raises 2020 earnings guidance as plan to offer wide range of medical services pays off

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

Shannon Stapleton | Reuters

CVS Health reported a better-than-expected 3.5% leap in third-quarter income and raised its 2020 earnings guidance on Friday as its plan to remake the pharmacy chain right into a well being service firm paid off.

Offering all the pieces from insurance coverage to Covid-19 testing, the health-care firm additionally named a brand new CEO. Karen Lynch will turn into the corporate’s CEO on Feb. 1. She is at present govt vp of CVS Health and president of Aetna, the well being insurer that CVS acquired in 2018.

CVS CEO Larry Merlo will step down from the function, however serve on the corporate’s board of administrators.

Shares had been up greater than 3% pre-market buying and selling.

Here’s how the corporate reported for the quarter ended Sept. 30, in contrast with what analysts had been anticipating, based mostly on a survey of analysts by Refinitiv:

  • Adjusted earnings per share: $1.66 adjusted vs. $1.33 anticipated
  • Revenue: $67.06 billion, vs. $66.66 billion anticipated

On an unadjusted foundation, the health-care firm and drugstore chain reported fiscal third-quarter internet earnings of $1.22 billion, or 93 cents per share, down from $1.53 billion, or $1.17 per share, a yr earlier.

Revenue rose 3.5% to $67.06 billion, from $64.81 billion a yr prior. It additionally outpaced the $66.66 billion anticipated by analysts.

The firm raised its full-year guidance for earnings per share to between $5.60 to $5.70 from $5.16 to $5.29 and its full-year 2020 adjusted earnings per share guidance range to $7.35 to $7.45 from $7.14 to $7.27.

It mentioned its money movement for the total yr would range from $12.75 billion to $13.25 billion, greater than its earlier outlook of between $11 billion to $11.5 billion.

The firm cautioned that there was nonetheless some uncertainty as a result of of the Covid-19 pandemic.

CVS has expanded Covid-19 testing, administered flu pictures and ready for the rollout of the coronavirus vaccine in the course of the pandemic. It has greater than 4,000 drive-thru check websites at its pharmacies and has administered greater than 6 million checks. The firm mentioned it plans to have almost 1,000 websites for speedy testing by the top of the yr.

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