Front-end comparable sales gained in the CVS Health third quarter as the company turned in better results than Wall Street expected.
Company net loss was $3.98 billion, or $3.13 per diluted share, versus $87 million, or seven cents per diluted share, in the year-previous quarter. Adjusted for one-time events, net income was $2.04 billion, or $1.60 per diluted share, versus $1.37 billion, or $1.09 per diluted share, in the year-before period, CVS reported.
A Zacks Investment Research analyst consensus estimate for the CVS third quarter called for adjusted diluted earnings per share of 1.36 and revenues of 98.29 billion.
Total revenue was $102.87 billion versus $95.43 billion in the 2024 quarter, the company noted.
Operating loss was $3.21 billion versus operating income of $832 million in the prior-year quarter, and adjusted operating income was $3.46 billion versus $2.55 billion. The operating loss was resulted from a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit, partially offset by the absence of $1.2 billion in restructuring charges recorded a year earlier and the adjusted operating income increase.
In the company’s Pharmacy and Consumer Wellness business, total revenues increased to $36.21 billion from $32.42 billion year over year, and adjusted operating income slipped $1.48 billion from $1.6 billion. Comparable store sales increased $14.3% as front end comps, which includes general merchandise, increased 1.5%.
CVS updated its full fiscal-year guidance to put GAAP diluted loss per share at 34 cents to 24 cents versus the previously stated earnings of $3.84 to $3.94 and adjusted EPS guidance at a range of $6.55 to $6.65 versus $6.30 to $6.40.
“CVS Health uniquely delivers what the people we serve want the most: a connected, simpler experience that improves health and simplifies care,” said David Joyner, CVS Health president and CEO. “Our leadership team has stabilized operations and is focused on businesses and markets where we can succeed. As a result, we are making progress on our journey to be America’s most trusted health care company. Our strong enterprise performance demonstrates the continued focus we have on operational and financial improvement across our businesses.”
