CVS came out well ahead of Wall Street estimates in its second quarter behind Pharmacy and Consumer Wellness segment strength and a front-end comparable sales gain of 3.4%.
Company net income was $1.02 billion, or 80 cents per diluted share, versus $1.77 billion, or $1.41 per diluted share, in the year-prevous quarter. Adjusted for one-time events, company net income was $2.3 billion, or $1.81 per diluted share, versus $2.31 billion, or $1.83 per diluted share, in the year-before period.
A Zacks Investment Research analyst consensus estimate called for earnings per diluted adjusted share of $1.47 and revenue of $93.72 billion.
Total revenues were $98.92 billion versus $91.23 billion, in the year-earlier quarter, the company maintained. Operating income was $2.38 billion versus $3.05 billion in the period a year prior, while adjusted operating income was $3.81 billion versus $3.74 billion. Pharmacy drug mix, increased prescription volume and increased front-of-store volume, which includes general merchandise, drove revenues, partially offset by continued pharmacy reimbursement pressure.
In the CVS Pharmacy and Consumer Wellness segment, total revenue was $33.58 billion, with adjusted operating income of $1.34 billion, versus $29.84 billion and $1.24 billion, respectively, in the year-past quarter. Comparable store sales increased 3.4%.
CVS revised full-year guidance with GAAP diluted EPS in a range to $3.84 to $3.94 from $4.23 to $4.43, and adjusted EPS in a range to $6.30 to $6.40 from $6 to $6.20.
Brian Newman, CVS Health CFO, noted in a conference call that front-end comps got a boost from the timing of the Easter holiday, which contributed roughly one percentage point to the overall proportional gain.
David Joyner, CVS Health president and CEO, said, “What people want most, a connected, simpler health care experience, is what CVS Health uniquely provides. For the 185 million people we serve, we deliver better access, greater affordability and aligned advocacy. Our strong performance demonstrates the continued focus we have on operational and financial improvement across our businesses, led by a significant and durable recovery at Aetna, strong retention at CVS Caremark, and growth and momentum at CVS Pharmacy.”
