CVS Health Corporation (NYSE: CVS) announced its fourth-quarter earnings and revenue on Thursday, with both earnings and revenue beating estimates.
According to the company, revenue for the fourth quarter increased 5.3% to $48.4 billion, beating analysts’ estimates of $47.52 billion. Net income for the quarter rose 92.6% to $3.3 billion. Adjusted earnings per share dropped 12.3% from the result for the same period last year to $1.92 per share, surpassing estimates of $1.89 per share.
For the full year ended December 31, 2017, the company reported revenue of $184.8 billion, increasing 4.1% from $177.5 billion for full year 2016. Net income for full-year 2017 increased 24.5% to $6.6 billion, which was mainly due to the income tax benefit of $1.5 billion associated with the TCJA, according to the press release of the company.
“In 2017, we delivered on the four-point plan we set in place to return to more robust levels of growth. Our position in the evolving health care landscape is stronger than ever before, and we remain confident in our model and in our ability to make health care more affordable, more accessible and more effective,” Larry Merlo, the president and chief executive officer of the company, said in the statement on Thursday.
The company also provides guidance for 2018. First quarter adjusted operating growth is expected to be 0.5% to 4.5%. Full-year adjusted operating profit growth is expected to down 1.5% to up 1.5%
“We enter 2018 with the foundation to propel us to win across all of our businesses. I'm very pleased with the strong PBM selling season we had, with gross client wins of $6.2 billion, and our retail collaborations are expected to drive solid performance in our pharmacies,” said Mr. Merlo.