People walk past a CVS pharmacy in the Manhattan borough of New York City.
Shannon Stapleton | Reuters
CVS Health on Tuesday reported a strong first quarter and raised its full-year forecast as customers come to the store for the COVID-19 vaccination, testing and prescriptions.
The company is a major provider of the COVID-19 vaccine and has just started offering same-day appointments for vaccination.
The company’s shares were up nearly 2 percent in futures trading.
Here’s what the company reported for the fiscal first quarter ended March 31, compared to what analysts expect from the Refinitiv analyst survey:
- Adjusted earnings per share: $ 2.04 compared to the $ 1.72 expected.
- Revenue: $ 69.1 billion, versus $ 68.39 billion expected.
Healthcare companies and drugstore chains reported net income of $ 2.22 billion, or $ 1.68 per share, up from $ 2.01 billion, or $ 1.53 per share, last year.
Excluding items, it earned $ 2.04 per share, more than $ 1.72 per share analysts forecast by Refinitiv.
Revenue rose to $ 69.1 billion from $ 66.8 billion a year earlier. That surpassed analysts’ forecast of $ 68.39 billion.
The company raised recommendations for the year. It said it expects 2021 earnings to be between $ 6.24 and $ 6.36 per share and after an adjustment between $ 7.56 and $ 7.68 per share.
Reiterating that full-year cash flows from operations are expected to range from $ 12 billion to $ 12.5 billion.
The pharmacy chain faced a challenging year-over-year comparison this quarter in the retail segment. During the preceding year, customers rushed to fill prescriptions early and stock up on other health and personal care items before an on-site shelter order was placed. Virtual visits and home delivery of prescriptions – and customers throw more products from their storefront, like soaps and shampoos, into their baskets, in-store and online.
CVS said Tuesday it had lower in-store sales in the first quarter of this year due to accelerated demand in March 2020 and a weak cough, cold and flu season.
Same-store sales at drugstores and combined front-of-the-counter sales increased just 0.4%, compared with a 9% growth a year earlier. Same-store sales fell 11.4%.
However, it said revenue increases from COVID-19 testing and CVS vaccination were provided at stores and at long-term care facilities. It said the refilled prescriptions were roughly the same from the previous year using the 30-day equivalent threshold.
As of Monday’s close, CVS shares are up nearly 14 percent this year.They closed at $ 77.69 on Monday, bringing the company’s market cap to $ 101.97 billion.
Read the full issue here.