CVS Health raises outlook as third quarter results beat estimates

CVS Health reported 3rd 4th net Wednesday greeting that bushed Wall Street's expectations. 

Here's however the pharmacy elephantine performed compared to Wall analysts' estimates, according to Refinitiv:

• Earnings per stock $2.09 vs. $1.99, expected.
• Revenue $81.16 cardinal vs. $76.75 billion, expected.

It's the 3rd consecutive 4th successful which CVS bushed net expectations. Revenue roseate 10% year-over-year.

CVS' Health Care Benefits conception grew astir 10% compared to the aforesaid 4th past year, driven successful portion by an summation successful its aesculapian memberships from 2021. Pharmacy services gross accrued implicit 10% compared to the play past year, arsenic full claims processed accrued by much than 3.6%, with gains offest by a diminution successful Covid vaccinations.

The retail and semipermanent attraction conception saw gross summation astir 7%, but its nett decreased owed mostly to a diminution successful request for Covid tests and vaccines.

The institution connected Wednesday besides reported a $5.2 cardinal complaint successful the 3rd 4th for a colony relating to its relation successful the opioid crisis. According to CVS, the colony resolves each existing claims against the institution relating to opioid distribution.

The institution raised its afloat twelvemonth outlook for the 2nd consecutive quarter. Now, the institution expects an adjusted net per stock for the afloat twelvemonth of betwixt $8.55 and $8.65, up from the scope of $8.40 to $8.60 that it announced successful August atop steadfast postulation and Covid-related anti-viral cause sales.

Shares were up astir 5% successful low-volume, pre-market trading.

CVS encompasses a ample swath of wellness attraction services, including its medicine and over-the-counter medicine sales, its MinuteClinic diligent attraction services and its pharmacy benefits manager, CVS Caremark. The institution besides owns Aetna, a managed wellness security company.

The retailer has signaled a renewed absorption connected wellness attraction this quarter, announcing its acquisition of Signify, an at-home wellness attraction company, for $8 cardinal successful September. The determination mirrors Amazon and Walgreens ain expansions further into wellness attraction services. Amazon is acquiring OneMedical, a concatenation of boutique doctor's offices, for $3.9 billion. Walgreens is presently opening doctors offices successful a partnership with VillageMD.

CVS is now selling over-the-counter proceeding aids, acknowledgment to a change successful categorization from the Food and Drug Administration.

CVS said it would wage $5 cardinal implicit the adjacent 10 years to states, tribes and others to settee opioid claims. The colony would screen each claims relating the retailers' publication to the opioid epidemic, according to the company. Walmart and Walgreens reportedly settled alongside CVS, according to Reuters.

In September, CVS agreed to wage a $82.5 cardinal settlement to West Virginia for its relation successful fueling the opioid situation successful the Mountain State. The pharmacy was accused of lax oversight of the medicine pills it sold.