CVS Health (NYSE: CVS) reported positive first quarter earnings Tuesday and increased its full-year outlook amid the influx of Covid-19 vaccines, tests and prescriptions. The pharmaceutical chain has been a major distributor of the vaccines and is currently offering same-day appointments to receive the shot. Shares rose almost 2% during premarket trading.
The company reported earnings of USD2.04 per share, compared to the expected USD1.72 a share. Revenue amounted to USD69.1 Billion, higher than analysts anticipated USD68.39 Billion.
CVS upped its forecast for adjusted earnings to USD7.56 – USD7.68 per share, up from the previous prediction of USD7.39 – USD7.55 per share.
“We delivered strong first quarter results and improved our outlook for the year,” said CEO Karen Lynch. “We continue to execute on our strategy while simultaneously managing through a pandemic, helping the country on the road to recovery.”
“Our unmatched assets and strength of our brand are driving results as we work toward improving care delivery and driving growth,” she added.
The company experienced rough year-over-year comparisons within the quarter. During the previous year, consumers were desperate to get their prescriptions and stock up on health necessities. Nevertheless, virtual visits as well as home deliveries became more popular, causing customers to purchase front of the store items such as shampoo, in stores and online.
CVS revealed it had a dip in front store sales during the first quarter of 2021 due to increased demand in March 2020 and a feeble cough, cold and flu season.
Shares rose nearly 14% within 2021 and the company has a current market value of USD101.97 Billion.