After another strong quarter, CVS raises outlook for 2022

By AP News

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COVID-19 vaccines and tests for the virus continue to boost CVS Health and the health care giant raised its annual forecast after another strong quarter.

COVID-19 vaccines and tests for the virus continue to boost CVS Health and the health care giant raised its annual forecast after another strong quarter.

The drugstore chain and pharmacy benefit manager said Wednesday that it now expects earnings of $8.20 to $8.40 per share for 2022.

The new range mostly eclipses Wall Street projections of $8.26 per share, according to FactSet.

CVS Health shares slipped in February when the company reported fourth quarter results that easily topped expectations but didn’t hike the annual forecast that it first laid out in December, citing the pandemic’s unpredictable nature.

CVS operates one of the nation’s largest drugstore chains with nearly 10,000 retail locations. It also runs prescription drug plans for big clients like insurers and employers through a large pharmacy benefit management business.

It also provides health insurance for more than 24 million people through its Aetna arm.

The company said Wednesday that it administered more than 8 million COVID-19 vaccines in the first quarter, a big drop from the 20 million it administered in the last quarter of 2021, when customers sought boosters and many children began getting the shots.

CVS Health also administered six million tests in the first quarter and its drugstores got a boost from customers buying additional tests as the omicron surge of the virus peaked at the start of the quarter.

Claims processed in the company’s biggest business, its pharmacy benefits management segment, also climbed nearly 6% compared to last year’s quarter, which had a weaker cough, cold and flu season.

Quarterly net income climbed 89% to $2.31 billion. The company posted adjusted earnings of $2.22 per share, beating analyst projections for $2.17.

Revenue was $76.8 billion, also topping Wall Street's expectations for $75.54 billion.

Shares of CVS Health Corp., based in Woonsocket, Rhode Island, started climbing before the opening bell.

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Industries:
Financials
Consumer Discretionary

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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