People pass a CVS Pharmacy store in the Manhattan neighborhood of New York City.
Shannon Stapleton | Reuters
CVS Health’s fourth-quarter earnings surpassed Wall Street expectations on Tuesday, when its pharmacy sales increased and it expanded Covid-19’s tests and vaccines.
The company’s shares rose 1.4% in the pre-market.
Here is what the company reported for the fourth fiscal quarter ended December 31, compared to what analysts expected, based on a survey of Refinitiv analysts:
- Earnings per share: $ 1.30 adjusted against expected $ 1.24
- Revenue: $ 69.55 billion versus expected $ 68.75 billion
The drugstore chain reported fiscal net profit of $ 975 million in the fourth quarter, or 75 cents per share, compared to $ 1.74 billion, or $ 1.33 per share, a year earlier.
Excluding items, it earned $ 1.30 per share, exceeding the $ 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.
Same-store sales grew 5.3% over the three-month period compared to the same period last year. They increased 7.5% in the pharmacy division, as the volume of prescriptions increased, but fell 1.8% in front of the store, as customers stopped visiting and did not have to buy so many medicines for flu and cold during the pandemic.
CVS also shared its guidance for the entire year for the next fiscal year. He projected earnings per share ranging from $ 6.06 to $ 6.22 and year-round adjusted earnings per share from $ 7.39 to $ 7.55. Its operating cash flow for the entire year is projected at $ 12 billion to $ 12.5 billion.
CVS offers Covid-19 tests in many of its stores. The company said it administered about 15 million tests across the country. It also gave more than 3 million Covid vaccines to more than 40,000 long-term care facilities. The drugstore chain and its competitor, Walgreens, struck a deal with the federal government in October to provide injections to employees and residents of nursing homes and nursing homes. Vaccination started at the facility in December.
CVS is now taking on a more important role in administering Covid vaccines in its stores. Last week, the federal government dispatched doses directly to drug stores – including CVS locations in 11 states.
CVS Chief Executive Karen Lynch said the chain will increase its focus on offering a broader range of health services, in addition to just filling prescriptions.
“Our goal is to make healthcare more accessible, cheaper and simpler,” she said in a press release. “To do this, we will accelerate the pace of our progress through targeted investments in key areas that will drive our consumer-focused strategy.”
At the close of Friday’s market, CVS shares rose less than 1% last year. The company’s stock, which has a market value of $ 97.13 billion, rose to $ 77.23 in 52 weeks in mid-January. It closed at $ 74.21 on Friday.
Read the full press release here.
This story is developing and will be updated.