CVS Health raises forecast for year, tops analyst estimates with strong second-quarter sales

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A view outside a CVS Pharmacy store on July 16, 2020 in Miramar, Florida.
Johnny Louis | Getty Images

CVS Health on Wednesday outpaced analysts’ expectations for second-quarter earnings and raised its forecast for the year, amid rising coronavirus cases in the U.S. and efforts to reenergize the nation’s vaccination campaign.

Shares of the drugstore chain and health insurer were up less than 1% in premarket trading.

Here’s what the company reported for the three-month period ended June 30, compared with what analysts were expecting, based on a survey of analysts by Refinitiv:

  • Adjusted earnings per share: $2.42 adjusted vs. $2.06 expected
  • Revenue: $72.62 billion vs. $70.3 billion expected

CVS reported second-quarter net income of $2.78 billion, or $2.10 per share, down from $2.98 billion, or $2.26 per share, a year earlier.

Excluding items, it earned $2.42 per share, more than the $2.06 per share expected by analysts surveyed by Refinitiv.

The company’s revenue jumped to $72.62 billion from $65.34 billion a year earlier, topping analysts’ expectations of $70.3 billion.

CVS raised its guidance for the year. It said it expects 2021 earnings will range between $6.35 and $6.45, and after adjustments between $7.70 to $7.80 per share.

As of Tuesday’s close, shares of CVS were up about 23% this year. Shares closed on Tuesday at $84.00, bringing the company’s market value to $110.59 billion.

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