CVS reports $3 billion in profit as health plans and drugstore services grow

CVS reported nearly $3 billion in quarterly profit as all of its business segments, from health plans and drugstores to in-store clinics, grew, the company said Wednesday.

CVS Wednesday reported net income of $2.95 billion, or $2.23 per share, compared to $2.78 billion, or $2.10 cents, in the year-ago quarter. CVS revenue increased 11% to $80.6 billion in the company’s second quarter.

CVS, owner of the country’s third-largest health insurance company in Aetna, said its revenue increase was boosted by health plan membership, which increased by 922,000 members to 24.4 million as of June 30, “due to increases in all product lines,” the company said in its second-quarter earnings report.

CVS Health’s earnings contributed to the company’s decision to raise its financial outlook for the remainder of 2022, with adjusted earnings per share now expected to be between $8.40 and $8.60, compared to a earlier forecast of $8.20 to $8.40.

“Despite a challenging economic environment, our differentiated business model helped deliver strong results this quarter, with significant revenue growth across all of our business segments,” said Karen S. Lynch, CEO of CVS Health. “The continued success of our grassroots business accelerated our strategy to expand access to health services and help consumers navigate to the best healthcare location.”

The strategy to add more healthcare services helped increase revenue 6.3% to $26.3 billion in the company’s retail and long-term care business segment “primarily driven by increased volume in prescription and frontline stores, including the sale of COVID-19 over-the-counter test kits and the impact of an extended cough, cold and flu season compared to the prior year, as well as pharmacy brand inflation,” the company said in its second-quarter earnings report.

Meanwhile, CVS said it paid down $1.5 billion in long-term debt in the quarter “while repaying $740 million to shareholders through dividends during the three months ended June 30, 2022.”

Debt was a concern of Wall Street analysts and investors when CVS bought Aetna nearly four years ago, but CVS has “repaid a net $22.5 billion of long-term debt” since closing the acquisition in November 2018, CVS said Wednesday. .

CVS reports $3 billion in profit as health plans and drugstore services grow

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