CVS Health Corporation (NYSE: CVS) announced its financial results for the first quarter of fiscal 2018. After the company released better-than-expected results for the first quarter, shares of the company rose 4.3% in premarket trading today.
The company reported net income of $998 million, or 98 cents per share, for the first quarter, which increased from $952 million, or 92 cents per share, for the same period last year. Adjusted earnings per share was $1.48 per share for the quarter, beating analysts’ estimates of $1.41 per share.
In addition, the company said that its net revenue for the first quarter increased 2.6% to $45.69 billion. Net revenue of its pharmacy benefit management business was up 3.2% to $32.22 billion. According to the company, the increase was motivated by higher claims on costlier drugs among other things. Same store sales for the quarter increased 5.8%, and pharmacy same store sales rose 7.3%.
“We generated solid results in the quarter, benefiting from higher prescription volumes within our retail pharmacy business and a lower effective income tax rate. At the same time, we continue to focus on long-term growth initiatives and to invest in process improvements and technology enhancements that will position us well to expand our reach in providing access to high-quality and more affordable care,” Larry Merlo, the President and Chief Executive Officer of the company, said in the statement on Wednesday.