May 1, 2019
(Reuters) – CVS Health Corp beat estimates for quarterly earnings on Wednesday and raised its full-year adjusted profit forecast as it benefits from its $69 billion purchase of health insurer Aetna, sending its shares up 5 percent.
The company’s upbeat outlook could allay some concerns about reimbursement pressures on the sector, particularly after rival Walgreens Boots Alliance last month spooked investors by cutting its full-year profit forecast.
Revenue at CVS’s pharmacy benefit management unit rose 3.1 percent to $33.56 billion, aided by higher prices of brand name drugs and also on increased pharmacy claims.
The drugstore chain operator and pharmacy benefits manager said it earned $1.62 per share excluding items, beating analysts’ average estimate of $1.50 per share, according to IBES data from Refinitiv.
CVS said it now expects adjusted profit per share of $6.75 to $6.90 for the full year, compared with its prior forecast of $6.68 to $6.88.
The company’s net income attributable to the company rose to $1.42 billion, or $1.09 per share, from $998 million, or $0.98 per share, a year earlier.
Revenue rose 34.8 percent to $61.65 billion.
(Reporting by Manas Mishra in Bengaluru; Editing by Saumyadeb Chakrabarty)