CVS Health Posts Strong Results Supported By Prescription

CVS Health quarterly results beat expectations after surge in demand for COVID vaccines and surge in prescriptions

CVS Health exceeded analysts’ expectations by publishing its third-quarter results, which prompted it to raise its expectations for the year at a time when it witnessed support from dispensing more prescriptions and selling a greater number of corona vaccines, which was reflected in the CVS stock’s rise by 3% before the market opened.

The pharmacy and health insurance chain expects its adjusted earnings per share during 2021 to range between $7.9-8, knowing that its previous forecast was only between 7.7-7.8, but guidance for full-year earnings per share before adjustment fell from 6.35-6.45 to 6.13-6.23 dollars, to read more [CVS Health Profits Beat Expectations After Higher Sales of Virus Vaccines And Tests], but it’s worth noting that CVS incurs several extraordinary expenses, including integration costs related to its acquisition of Aetna, as well as offsetting the impairment of its long-term care business.

CVS net income for the third quarter ended September 30 was $1.59 billion, or $1.20 per share, down from $1.22 billion, or 93 cents per share, a year earlier, excluding specific expenses, the company earned $1.97 per share, beating Wall Street analyst expectations of $1.78 per share, as it witnessed a jump of 10% from $67.06 billion a year ago to $73.79 billion during this quarter, also beating analyst expectations, which did not exceed 70.49 billion.

As of Tuesday’s closing price, CVS stock is up 33% this year, noting that it touched its highest value in a year on Tuesday, but closed at $91.15, giving the company a market value of $120.28 billion.

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