A strong performance managing prescription drug coverage helped push CVS Health above third-quarter expectations.
Revenue from the health services business, which includes pharmacy benefit management, rose nearly 8% to $46.89 billion. The company said growth across across all product lines pushed total quarterly revenue up more than 10% to $89.76 billion, easily topping Wall Street expectations, according to a survey of analysts by Zacks Investment Research.
Overall net income was $2.26 billion. Earnings, adjusted for one-time gains and costs, came to $2.21 per share, also better than the $2.13 that Wall Street had expected.
CVS Health 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.
Woonsocket, Rhode Island-based CVS Health Corp. confirmed its forecast for full-year adjusted earnings to range between $8.50 and $8.70 per share.
Analysts expect, on average $8.59 per share, according to FactSet.
"Despite a challenging business environment, we continue adapting to the changing needs of our consumers by connecting our care delivery capabilities in communities across the country, broadening access to care and lowering costs,” CEO Karen Lynch said in a prepared statement.
Shares of CVS Health slipped 1% before the opening bell Wednesday.
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A portion of this story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CVS at https://www.zacks.com/ap/CVS