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August 5, 2022
CVS Beats Expections in Q2
Posted In: Retail Articles

By Mike Duff

Contributing Editor

As the company continues on its reorganization as a community well resource, CVS Health beat Wall Street estimates on earnings and revenues while posting a strong comparable sales gain in the retail business.

Company net income was $2.95 billion, or $2.23 per diluted share, versus $2.78 billion, or $2.10 per diluted share, in the year-earlier period. Adjusted for one-time charges, CVS maintained, net income was $3.18 billion, or $2.40 per diluted share, versus $3.21 billion, or $2.42 per diluted share, in the year-prior period.

CVS topped a MarketBeat-published analyst consensus estimate for adjusted diluted earnings per share, at $2.16, and revenue, at $76.38 billion.

Total revenues were $80.64 billion versus $72.62 billion in the year-before quarter, as posted by the company. Operating income was $4.57 billion versus $4.33 billion in the year-previous period, the company stated. Adjusted operating income slipped from $4.81 billion to $4.89 bill in the quarter year over year.

In the Retail/LTC Segment, CVS reported, total revenues were $26.29 billion versus $24.73 billion in the year-past quarter. Comparable sales gained 8% in the period year over year, while front store comps, including general merchandise, advanced 9.4%.

In a conference call, Karen Lynch, CVS Health president and CEO said strength in consumer health sales, including strong COVID over-the-counter tests and sales of cough, cold and flu products, drove front-end sales.

“Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter with significant revenue growth across all of our business segments,” Lynch said in announcing the financial results. “The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care. We remain a trusted community health destination for millions of individuals with health products and services that engage customers in all aspects of their health wherever and whenever they need it.”

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