CVS Health’ topped Wall Street’s expectations with its retail pharmacy business fueling growth despite fewer customers shopping within the front of its stores.
Revenue via CVS’ retail pharmacy segment reached $20.7 billion, up 5.7 percent via the year-ago quarter, driven by an 8.3 percent increase in pharmacy revenue. Revenue via front-end sales, which includes goods like greeting cards along with also household items, grew just 0.2 percent.
Same-store prescription volume surged 9.5 percent, while front-end same-store sales dipped 1 percent.
Here’s how the company did compared with what Wall Street analysts polled by Thomson Reuters expected:
- Adjusted earnings: $1.69 per share vs. $1.61 per share
- Revenue: $46.7 billion vs. $46.35 billion
within the quarter, CVS’ revenue reached $46.7 billion, up 2.2 percent via the year-ago quarter along with also above analysts polled by Thomson Reuters’ estimates of $46.35 billion.
within the quarter ended June 30, CVS reported a net loss of $2.56 billion, or $2.52 per share, compared that has a profit of $1.10 billion, or $1.07 per share, a year ago.
After stripping out one-time expenses, including a $3.9 billion goodwill impairment charge related to its long-term care business, the company earned $1.72 billion, or $1.69 per share, topping analysts’ estimates of $1.61 per share via Thomson Reuters.
The company narrowed its full-year adjusted earnings estimate to between $6.98 along with also $7.08 per share, up via $6.87 to $7.08 per share.
CVS expects its roughly $69 billion acquisition of health insurer Aetna to close within the late third quarter or early part of the fourth quarter. California’s Insurance Commissioner last week urged the Department of Justice to block the deal.
Shares of CVS gained more then 3 percent Wednesday in premarket trading.
“The strong revenue, adjusted EPS, gross along with also operating margins, along with cash flow generated within the quarter were the direct result of our team’s ability to boost prescription growth by expanding relationships with PBMs along with also health plans as well as our ongoing streamlining efforts along with also innovation,” CVS CEO Larry Merlo said in a statement.
CVS along with also various other drugstores, including Walgreens Boots Alliance along with also Rite Aid, have seen their so-called front-of-store sales threatened as shoppers increasingly buy household staples online or via convenience stores. E-commerce giant Amazon will enter the pharmacy business with its $1 billion acquisition of online start-up PillPack.
To protect its physical retail business, CVS has delved further into health-care services. Its walk-in retail clinics, known as MinuteClinics, are a key component of its acquisition of Aetna. The idea is actually they can add more services to the clinics along with also steer people into them along with also away via more expensive facilities like emergency rooms.
CVS is actually also trying to expand digitally. which announced Wednesday which’s partnering with Teladoc Health to roll out virtual MinuteClinic visits nationwide which year.