CVS Health thumped second-quarter expectations and hiked its full-year forecast as growing prescription claims and COVID-19 test kits sales helped to offset a drop in vaccinations.
The drugstore chain, pharmacy benefit manager and insurer said Wednesday that it now expects to post adjusted earnings of $8.40 to $8.60 per share this year, a 20-cent hike at both ends of the range from its previous forecast.
Analysts forecast, on average, earnings of $8.35 per share, according to FactSet.
In the second quarter, adjusted earnings totaled $2.40 per share as total revenue rose 11% to $80.64 billion.
Analysts predicted earnings of $2.18 per share on $76.41 billion in revenue.
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.
Shares of CVS Health Corp., based in Woonsocket, Rhode Island, climbed 2% before the opening bell.