CVS Health Beats Earning Estimates Amid Rise in Covid-19 Vaccines

Nov 3, 2021 By MarketDepth

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CVS Pharmacy Store

CVS Health (NYSE: CVS) reported better-than-expected third-quarter earnings on Wednesday and subsequently increased its outlook for the year. The company’s positive news follows a rise in volume for prescription medication as well as a boost in Covid-19 vaccines. Shares rose 3% during premarket trading upon the news.

Earnings Above Expectations

The drugstore chain reported earnings of USD1.97 per share, compared to the expected USD1.78 a share. Revenue amounted to USD73.79 Billion, higher than analysts anticipated USD70.49 Billion. Furthermore, the company now believes 2021 adjusted earnings per share will be anywhere between USD7.90 and USD8.00, up from its previous forecast of USD7.70 to USD7.80.

“We outperformed expectations once again and continue to lead the way in changing how, when and where care is delivered for millions of Americans. Our services are responsive to evolving consumer needs, from administering millions of COVID-19 tests and vaccines to offering primary care accessible from virtually anywhere, and our touchpoints allow for unmatched impact.”

CVS Health President and CEO Karen S. Lynch

The American healthcare company has worked to provide various health-care offerings. Through its benefits plans, the company urges Aetna members to visit Minute Clinics and urgent cares located within its CVS drugstore locations by providing little to no co-pay. CVS just introduced Aetna Virtual Primary Care, allowing patients access to a doctor 24/7.

“The consumer has been incredibly challenged by the complexity of the healthcare system and our overall strategy is to make sure that we can provide them access points with lower-costs, higher-quality, with convenience, and overall, engagement, and those factors will help us with the long-term strategy of driving down health-care costs.”

CVS Health President and CEO Karen S. Lynch

CVS shares have risen 33% throughout the year and has a current market value of USD120.28 Billion.