CVS Health (CVS) earnings Q1 2021 beat


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

Shannon Stapleton | Reuters

CVS Health on Tuesday reported a powerful first quarter and raised its full-year forecast, as clients got here to its shops for Covid-19 vaccinations, exams and prescriptions.

The firm has been a serious supplier of Covid-19 vaccines and recently began offering same-day appointments for the shots.

Shares of the corporate had been up greater than 4% Tuesday afternoon and touched a 52-week excessive of $80.94.

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

  • Adjusted earnings per share: $2.04 vs. $1.72 anticipated
  • Revenue: $69.1 billion vs. $68.39 billion anticipated

The health-care firm and drugstore chain reported web earnings of $2.22 billion, or $1.68 per share, up from $2.01 billion, or $1.53 per share, a 12 months earlier.

Excluding objects, it earned $2.04 per share, greater than the $1.72 per share anticipated by analysts surveyed by Refinitiv.

Revenue rose to $69.1 billion from $66.8 billion a 12 months earlier. That outpaced analysts’ expectations of $68.39 billion.

The firm raised its steerage for the 12 months. It stated it expects 2021 earnings will vary between $6.24 and $6.36 per share, and after changes between $7.56 and $7.68 per share.

It reiterated that its full-year money stream from operations is projected to vary from $12 billion to $12.5 billion.

The drugstore chain confronted difficult year-over-year comparisons within the quarter in its retail enterprise. During the interval a 12 months earlier, clients rushed to fill prescriptions early and refill on different health- and personal-care objects previous to shelter-in-place orders. Virtual visits and residential deliveries of prescriptions spiked — and clients tossed extra objects from the entrance of the shop reminiscent of cleaning soap and shampoo into their baskets in shops and on-line.

CVS stated Tuesday it had decrease entrance retailer gross sales within the first quarter of this 12 months due to accelerated demand in March 2020 and a weak cough, chilly and flu season.

Same-store gross sales throughout its pharmacy and entrance retailer mixed had been up simply 0.4% in contrast with development of 9% a 12 months earlier. Same-store gross sales for the entrance retailer fell 11.4%.

However, its income acquired a carry from Covid-19 testing and vaccinations. CVS has given the pictures at its shops and at long-term care services. Prescriptions crammed had been about the identical from a 12 months earlier on a 30-day equal foundation.

CVS has administered over 23 million Covid exams and over 17 million vaccines via April, CEO Karen Lynch stated on an earnings name. She stated these companies have helped the pharmacy chain appeal to clients, too. Among these new to CVS who acquired Covid testing, she stated it had a few 9% conversion price filling a brand new prescription at its pharmacy.

CVS, which owns well being insurer Aetna, has targeted on weaving collectively completely different items of its enterprise right into a health-care ecosystem. For instance, many Aetna members can go to Minute Clinics for no co-pay or a low co-pay. Those with a kind of medical advantages plans are about 50% extra more likely to go to one of many pressing care clinics, that are inside CVS shops, Lynch stated.

The firm has turned about 800 of its shops into HealthHubs, a retailer mannequin that features extra companies like sleep apnea testing and psychological well being appointments with medical social staff.

As of Monday’s shut, shares of CVS had been up almost 14% this 12 months. They closed at $77.69 on Monday, bringing the corporate’s market worth to $101.97 billion.

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