CVS Health boosts guidance on strong third quarter

American chemist chain CVS Health revised its full-year guidance on Wednesday, following a jump in third-quarter earnings.

The pharmacist and health insurance specialist said total revenues for the three months to 30 September had improved 10% year-on-year to $73.8bn, while diluted earnings per share were ahead 29% at $1.20. Adjusted EPS rose 18.7% to $1.97.

Adjusted operating income rose 12.5%, to $4.07bn, boosted primarily by the administration of Covid-19 vaccines and in-store diagnostic testing.

Karen Lynch, chief executive, said: “We outperformed expectations once again, and continue to lead the way in changing how, when and where care is delivered for millions of Americans.

“Our services are responsive to evolving consumer needs, from administering millions of Covid-19 tests and vaccines to offering primary care accessible from virtually anywhere.”

Looking to the full year, CVS now expects adjusted EPS to come in between $7.90 and $8.00, up from its previous guidance for between $7.70 and $7.80. Full-year cash flow from operations is expected to range from $13.0bn and $13.5bn, compared to an earlier forecast for between $12.5bn and $13.0bn.

However, forecasts for EPS before adjustments were revised down on the back of integration costs related to its acquisition of Aetna and a goodwill impairment charge associated with its long-term care business.

CVS now expects GAAP diluted EPS to come in between $6.13 and $6.23 in the full-year, lower than its earlier forecast for between $6.35 and $6.45.

CVS acquired healthcare insurance specialist Aetna 2018 in a blockbuster $69bn deal.