CVS Increases 2022 Forecast Following First-Quarter Earnings

CVS Increases 2022 Forecast Following First-Quarter Earnings

CVS Health (NYSE: CVS) reported first-quarter earnings that topped Wall Street expectations and ultimately raised its guidance for the year as demand for prescriptions rose and Covid vaccines and testing declined. The company’s shares rose over 1% during early morning trading.

The American retail corporation reported earnings of USD2.22 per share, compared to the expected USD2.15 a share. Revenue amounted to USD76.83 Billion, higher than analysts anticipated USD75.39 Billion. Additionally, same-store sales grew 10.7% within the quarter in comparison to the previous year. 

“Our strategy improves access to affordable, convenient, and personalized health care, which benefits consumers and shareholders. We once again showed the power of our purpose and potential, building on our strong momentum and raising full-year guidance as a result,” Karen S. Lynch, CVS Health President, and CEO said.

CVS stated that it reeled in new customers, filled more prescriptions, and witnessed more cough, cold, and flu season within the time period. Moreover, the company said it also experienced a sales increase amid pharmacy brand inflation.

Nevertheless, the pharmacy’s operating income was affected after declining 2.4% during the quarter amid an agreement between CVS and the state of Florida for USD484 Million to settle pending opioid claims. The settlement is set to be paid throughout an 18-year-period.

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