CVS Health reported third-quarter earnings Wednesday morning that beat Wall Street expectations. Here’s how the pharma giant fared compared to Wall analysts’ estimates, according to Refinitiv:
Earnings per share of $2.09 vs. $1.99, expected. Revenue of $81.16 billion vs. $76.75 billion, expected.
It’s the third straight quarter in which CVS beat earnings expectations. Revenue was up 10% year over year. CVS’s Health Benefits segment grew nearly 10% compared to the same quarter last year, driven in part by the growth of its medical subscriptions starting in 2021. Pharmacy services revenue increased more than 10% compared to the year-ago period, as total processed claims rose more than 3.6%, with gains offset by a decline in Covid vaccinations. The retail and long-term care division saw revenue rise nearly 7%, but its profits fell mainly due to a drop in demand for Covid tests and vaccines. The company on Wednesday also reported a $5.2 billion charge in the third quarter for a settlement related to its role in the opioid crisis. According to CVS, the settlement resolves all existing claims against the company related to the distribution of opioids. The company raised its full-year outlook for the second quarter in a row. The company now expects full-year adjusted earnings per share between $8.55 and $8.65, down from the range of $8.40 to $8.60 it reported in August on healthy traffic and sales of antiviral drugs that related to Covid. Shares rose about 5% in low-volume premarket trading. CVS encompasses a broad array of health care services, including prescription and over-the-counter drug sales, MinuteClinic patient care services and the pharmacy benefits manager, CVS Caremark. The company also owns Aetna, a managed health insurance company. CVS is now selling hearing aids over the counter, thanks to a change in categorization by the Food and Drug Administration. CVS said it will pay $5 billion over the next 10 years to states, tribes and others to settle opioid claims. The settlement will cover all claims related to the retailers’ contribution to the opioid epidemic, according to the company. According to Reuters, Walmart and Walgreens settled along with CVS. In September, CVS agreed to pay an $82.5 million settlement in West Virginia for its role in fueling the Mountain State’s opioid crisis. The pharmacy was accused of lax oversight of the prescription pills it sold.
title: “Cvs Health Reports Third Quarter Earnings Opioid Settlement " ShowToc: true date: “2022-11-11” author: “David Sharp”
CVS Health reported third-quarter earnings Wednesday morning that beat Wall Street expectations. Here’s how the pharma giant fared compared to Wall analysts’ estimates, according to Refinitiv:
Earnings per share of $2.09 vs. $1.99, expected. Revenue of $81.16 billion vs. $76.75 billion, expected.
It’s the third straight quarter in which CVS beat earnings expectations. Revenue was up 10% year over year. CVS’s Health Benefits segment grew nearly 10% compared to the same quarter last year, driven in part by the growth of its medical subscriptions starting in 2021. Pharmacy services revenue increased more than 10% compared to the year-ago period, as total processed claims rose more than 3.6%, with gains offset by a decline in Covid vaccinations. The retail and long-term care division saw revenue rise nearly 7%, but its profits fell mainly due to a drop in demand for Covid tests and vaccines. The company on Wednesday also reported a $5.2 billion charge in the third quarter for a settlement related to its role in the opioid crisis. According to CVS, the settlement resolves all existing claims against the company related to the distribution of opioids. The company raised its full-year outlook for the second quarter in a row. The company now expects full-year adjusted earnings per share between $8.55 and $8.65, down from the range of $8.40 to $8.60 it reported in August on healthy traffic and sales of antiviral drugs that related to Covid. Shares rose about 2% in premarket trading. CVS encompasses a broad array of health care services, including prescription and over-the-counter drug sales, MinuteClinic patient care services and the pharmacy benefits manager, CVS Caremark. The company also owns Aetna, a managed health insurance company. CVS is now selling hearing aids over the counter, thanks to a change in categorization by the Food and Drug Administration. CVS said it will pay $5 billion over the next 10 years to states, tribes and others to settle opioid claims. The settlement will cover all claims related to the retailers’ contribution to the opioid epidemic, according to the company. According to Reuters, Walmart and Walgreens settled along with CVS. In September, CVS agreed to pay an $82.5 million settlement in West Virginia for its role in fueling the Mountain State’s opioid crisis. The pharmacy was accused of lax oversight of the prescription pills it sold.
