CVS Health reported strong first-quarter results and raised its full-year outlook after large numbers of customers came to its pharmacies for coronavirus vaccines, tests, and prescriptions.
As CVS was one of the most important companies that provided COVID-19 vaccines, and recently started offering daily vaccination appointments to customers, all of this contributed to a rise in its shares by more than 4%, reaching $80.94, touching its highest value in 52 weeks.
During the fiscal quarter ending March 31, CVS reported adjusted earnings of $2.04 per share, compared to analyst expectations of $1.72, and revenue of $69.1 billion compared to expectations of $68.39 billion, and the company’s net income rose from $2.01 billion, or $1.53 per share, in the same period a year ago, to $2.22 billion, or $1.68 per share.
The health care company and the pharmacy chain added that its profits during 2021 will range from 6.24 to 6.36 dollars per share, and after adjustment, it may reach 7.56 to 7.68 dollars, and stressed that the cash flow from its business will range between 12-12.5 billion dollars.
However, the company stated that it recorded a decrease in sales of over-the-counter products during the first quarter due to the large demand it received in March 2020 and the absence of a clear season for colds, coughs and fevers, which led to the growth of the companies comparable sales growth in its pharmacies in total of only 0.4% compared to growth of 9% a year ago, and non-pharmaceutical sales alone decreased by 11.4%.
CVS Health shares are up 14% since the beginning of the year to its closing price last Monday of $77.69, giving the company a market capitalization of $101.97 billion.