CVS Health Reports Double-Digit Revenue Rise

CVS Health reported a 10% increase in revenue during the third quarter of the year, prompting executives to raise their end-of-year guidance.
CVS Health store

CVS has become a critical player in the COVID-19 pandemic, taking on testing and vaccination distribution efforts. The company reported revenue reached $73.8 billion in the third quarter 2021. The company posted earnings per share of $1.20, a 29% increase of the prior-year total, Drug Store News reported. 

Year to date, revenues have reached $215.5 billion, up 8.2% from last year. However, operating income fell 5.8% and adjusted operating income was up 12.5% for the quarter over 2020. Operating income was impacted by a $431 million goodwill impairment charge associated with the long-term care business in the retail/long-term care segment as well as an absence of a $271 million gain on the sale of the Coventry Health Care Workers’ Compensation business. 

COVID-19 vaccination, diagnostic testing and increased store volume in the retail/LTC segment attributed to higher adjusted operating income.

The third quarter earnings results led the company to raise its full-year 2021 GAAP diluted EPS to range from $6.13 to $6.23 and from $6.35 to $6.45, and its full-year 2021 adjusted EPS guidance to range from $7.90 to $8 and from $7.70 to $7.80, DSN reported. CVS also raised its full-year 2021 cash flow from operations projections to range from $13 billion to $13.5 billion, up from $12.5 billion to $13 billion.

“We outperformed expectations once again and continue to lead the way in changing how, when and where care is delivered for millions of Americans,” said CVS Health president and CEO Karen Lynch. “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.”

See the full story at Drug Store News.