Customers returned to CVS Health stores to fill prescriptions and receive tests and vaccines for COVID-19, helping the health care giant surpass Wall Street’s expectations in the second quarter.
The pharmacy chain and Pharmacy Benefits Manager raised their forecast for 2021 after a quarter that saw not only an increase in pharmacy applications but also a significant drop in revenue for its Aetna health insurance business.
CVS Health said on Wednesday that its total net income fell 6% in the last quarter to $ 2.78 billion from last year, when the insurance business surged as patients delayed treatment early in the pandemic.
But adjusted earnings for the quarter ended June 30 were $ 2.42 per share.
This exceeded analyst average expectations of $ 2.07 per share, according to FactSet.
Total revenue jumped 11% to $ 72.62 billion, which also beat analysts’ expectations.
CVS Health operates one of the largest pharmacy chains in the country with approximately 10,000 retail outlets. In addition to selling insurance, he also manages prescription drug dispensing plans for large clients such as insurers and employers through the large pharmacy benefit management business.
The company said it now expects adjusted earnings of $ 7.70 to $ 7.80 per share. This is above his previous forecast of $ 7.56 to $ 7.68 per share and above analysts’ expectations.
For the full year, analysts are expecting average earnings of $ 7.67 per share, according to FactSet.
The company also said Wednesday that it will raise the minimum wage for all hourly paid employees to at least $ 15 an hour by July next year. Employees are currently earning a minimum of $ 11 an hour, but this figure will rise to $ 13 next month.
CVS Health Corp. from Woonsocket, Rhode Island, fell 77 cents to $ 83.23 premarket.