People pass a CVS Pharmacy store in the New York City neighborhood of Manhattan.
Shannon Stapleton | Reuters
CVS Health’s fourth-quarter earnings exceeded Wall Street expectations on Tuesday as pharmacy sales rose and expanded Covid-19 testing and vaccines.
The company’s shares increased by 1.4% in premarket trading.
Here is what the company reported for the fourth fiscal quarter ended Dec. 31, compared to what analysts expected, based on a survey conducted by analysts at Refinitiv:
- Earnings per share: USD 1.30 adjusted compared to the expected USD 1.24
- Revenue: $ 69.55 billion compared to $ 68.75 billion expected
The pharmacy chain reported fourth-quarter tax revenue of $ 975 million or 75 cents a share, down from $ 1.74 billion or $ 1.33 a share a year earlier.
Except for the articles, it earned $ 1.30 per share, exceeding $ 1.24 per share expected by analysts surveyed by Refinitiv.
Revenue rose to $ 69.55 billion from $ 66.89 billion a year earlier. This is higher than analysts’ expectations of $ 68.75 billion.
Sales at the same store increased by 5.3% over the three-month period, compared to the same period last year. They jumped 7.5% in the pharmacy division because the volume of prescriptions increased, but decreased by 1.8% in front of the store, because customers skipped visits and did not need to buy as much flu and cold medicines during the pandemic.
CVS also shared its year-round guidelines for the next fiscal year. Projects earnings per share from $ 6.06 to $ 6.22 and year-round adjusted earnings per share to $ 7.39 to $ 7.55. Its year-round cash flow is projected at $ 12 billion to $ 12.5 billion.
CVS offers Covid-19 testing at many of its stores. The company said it has administered about 15 million tests nationwide. It has also delivered more than 3 million Covid vaccines to more than 40,000 long-term care units. The pharmacy chain and its competitor, Walgreens, reached an agreement with the federal government in October to provide shots to staff and residents at nursing homes and care units. Vaccinations at the facility began in December.
CVS is now taking on a bigger role in administering Covid vaccines in its stores. Last week, the federal government shipped doses directly to retail drug stores – including CVS locations in 11 states.
CVS CEO Karen Lynch said the chain will focus on providing a wider range of healthcare services, beyond simply completing prescriptions.
“Our goal is to make healthcare more accessible, more accessible and simpler,” she said in a press release. “To do this, we will accelerate our progress through targeted investments in key areas that will drive our consumer-oriented strategy.”
At the close of the market on Friday, CVS shares rose below 1% in the last year. The company’s shares, which have a market value of $ 97.13 billion, reached a 52-week high of $ 77.23 in mid-January. It closed at $ 74.21 on Friday.
Read the full press release here.
This story is developing and will be updated.