CVS Reports Stronger Demand
Healthcare company says 10.3% increase in overall sales driven by growth in health benefits business CVS’s revenue for the latest quarter was $88.9 billion, ahead of analyst estimates. Photo: Joe Raedle/Getty Images By Ngai Yeung Aug. 2, 2023 7:18 am ET CVS Health reported a 10.3% increase in its second-quarter sales, driven by growth in its health benefits business. Health Status The Woonsocket, R.I.-based company’s healthcare benefits segment reported revenue of $26.7 billion, up 17.6% from a year ago as more people used Medicare Advantage compared with the same period last year. Its health services segment saw revenue climb 7.6% in the latest quarter to $46.2 billion, driven by recent acquisitions. The healthcare company has been expanding the range of its offerings la
CVS’s revenue for the latest quarter was $88.9 billion, ahead of analyst estimates.
Photo: Joe Raedle/Getty Images
CVS Health reported a 10.3% increase in its second-quarter sales, driven by growth in its health benefits business.
Health Status
The Woonsocket, R.I.-based company’s healthcare benefits segment reported revenue of $26.7 billion, up 17.6% from a year ago as more people used Medicare Advantage compared with the same period last year.
Its health services segment saw revenue climb 7.6% in the latest quarter to $46.2 billion, driven by recent acquisitions.
The healthcare company has been expanding the range of its offerings lately. Earlier this summer, the company closed a $10.6 billion deal for Oak Street Health, which operates primary-care clinics for the elderly. The company completed the almost $8 billion acquisition of home-healthcare company Signify Health in March.
The company’s pharmacy and consumer-wellness segment posted revenue of $28.8 billion, up from $26.7 billion a year ago. The sales were helped by higher drug prices and prescription volume, which partially offset a fall in demand for Covid-19 vaccines and tests and a weaker flu season compared with last year.
Retail Shrink
CVS this week said it was shedding about 5,000 jobs, primarily in corporate roles, to help cut costs. The company is also trimming down on travel expenses and its use of consultants and vendors.
The company reported a $496 million pretax restructuring charge for the quarter and expects to complete its restructuring program by the end of 2023.
The Bottom Line
Revenue for the quarter ended June 30 was $88.9 billion, ahead of analyst estimates of $86.4 billion, according to FactSet.
The company lowered its full-year per-share earnings guidance to between $6.53 and $6.75, compared with its previous view of $6.90 and $7.12.
Stripping out one-time items, earnings per share came in at $2.21, compared with $2.13 expected by analysts polled by FactSet.
Write to Ngai Yeung at [email protected]
Corrections & Amplifications
CVS Health lowered its outlook for per-share earnings for the full year. An earlier version of this article incorrectly said that the company had raised its outlook for the year. (Corrected on Aug. 2)
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