CVS raises forecast for year, as first-quarter earnings top expectations

Health, Fitness & Food

A CVS Pharmacy store is seen in the Manhattan borough of New York City, New York.
Shannon Stapleton | Reuters

CVS Health on Wednesday outpaced Wall Street’s expectations for first-quarter earnings and raised its guidance for the year, as it saw demand for at-home Covid tests, prescriptions and more.

The health-care company said it now expects adjusted earnings per share for 2022 to range from $8.20 to $8.40 compared with its previous forecast of between $8.10 to $8.30.

Shares were up more than 1% in premarket trading.

Here’s what the company reported for the three-month period ended March 31, compared with what analysts were expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.22 adjusted vs. $2.15 expected
  • Revenue: $76.83 billion vs. $75.39 billion expected

The health-care company reported net income of $2.31 billion, or $1.74 per share, higher than the $2.22 billion, or $1.68 per share, a year earlier.

Excluding items, CVS earned $2.22 per share, more than the $2.15 per share expected by analysts surveyed by Refinitiv.

Revenue increased to $76.83 billion from $69.1 billion a year earlier. That topped/fell short of analysts’ expectations of $75.39 billion.

As of Tuesday’s close, shares of CVS are down about 7% so far this year, outperforming the 12% decline of the S&P 500. Shares closed Tuesday at $95.98, bringing the company’s market value to $126.04 billion.

This story is developing. Please check back for updates.

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