cloudyn.png
Wednesday August 17th, 2022 12:22AM

After another strong quarter, CVS raises outlook for 2022

By The Associated Press
Related Articles
  Contact Editor

COVID-19 vaccines and tests for the virus continue to boost CVS Health and the health care giant raised its annual forecast after yet another strong quarter.

The drugstore chain and pharmacy benefit manager also processed more prescriptions and added customers to its health insurance business in a better-than-expected performance.

The company said Wednesday that it administered more than 8 million COVID-19 vaccines in the first quarter. That represented a big drop from the over 20 million that it administered in the last quarter of 2021, when customers sought boosters and many children began getting shots.

CVS Health said it also administered more than six million tests in the first quarter, and its drugstores got a boost from customers buying additional test kits to take home as the omicron surge of the virus peaked at the start of the quarter.

The vaccines and tests are bringing more customers into CVS Health drugstores, but that advantage may be starting to wane, said Neil Saunders, who follows the company as managing director of GlobalData.

“It is reasonable to question how long it will continue to deliver,” Saunders said in an email.

COVID-19 vaccination rates have slowed nationally, and CVS Health leaders told analysts Wednesday that they expect the number of vaccinations they administer this year to drop about 70%, to around 18 million.

CVS operates one of the nation’s largest drugstore chains with nearly 10,000 retail locations. It also runs prescription drug plans for big clients like insurers and employers through a large pharmacy benefit management business.

It also provides health insurance for more than 24 million people through its Aetna arm.

That health insurance business has added 674,000 customers since the end of last year. But the segment saw its adjusted operating income drop slightly in the first quarter, partly because medical costs are returning to normal levels.

Claims processed in the company’s biggest business, its pharmacy benefits management segment, also climbed nearly 6% compared to last year’s quarter, which had a weaker cough, cold and flu season.

Quarterly net income climbed 4% to $2.31 billion. But operating income slipped due to a $484 million settlement the company reached with the state of Florida to settle opioid-related litigation.

Overall, the company posted adjusted earnings of $2.22 per share, beating analyst projections for $2.17.

Revenue was $76.8 billion, also topping Wall Street’s expectations for $75.54 billion.

CVS Health said it now expects per-share earnings of between $8.20 and $8.40 this year.

The new outlook mostly eclipses Wall Street projections of $8.26 per share, according to FactSet.

Company shares slipped in February after the company reported fourth quarter results that easily topped expectations but didn’t hike its forecast for the year, citing the pandemic’s unpredictable nature.

Shares of CVS Health Corp., based in Woonsocket, Rhode Island, climbed 1% to $96.90 Wednesday.

___

Follow Tom Murphy on Twitter.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Industries, AP Business - Health Care
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Russia pounds Ukraine, targeting supply of Western arms
Russian forces pounded targets across Ukraine, taking aim at supply lines for foreign weapons in the west and intensifying an offensive in the east
7:18AM ( 32 minutes ago )
EU leader calls for Russian oil ban in new set of sanctions
The European Union’s leader has called on the 27-nation bloc to ban oil imports from Russia in a sixth package of sanctions targeting Moscow for its war in Ukraine
7:17AM ( 32 minutes ago )
After another strong quarter, CVS raises outlook for 2022
COVID-19 vaccines and tests for the virus continue to boost CVS Health and the health care giant raised its annual forecast after a strong first quarter
7:14AM ( 35 minutes ago )
Associated Press (AP)
Sri Lanka foreign reserves at record low, politics in crisis
Sri Lanka’s finance minister says the South Asian country's economy is in dire straits with its usable foreign reserves down to less than $50 million
5:58AM ( 1 hour ago )
Live updates | EU leader calls for Russian oil ban
The European Union’s chief executive is proposing that the bloc ban oil imports from Russia over its war on Ukraine, and target the country’s biggest bank and major broadcasters in a new round of sanctions
5:02AM ( 2 hours ago )
World shares slip ahead of Fed interest rate decision
Shares are mostly lower in Europe and Asia as investors await a decision by the Federal Reserve on interest rates
4:53AM ( 2 hours ago )
AP Business
Starbucks reports record Q2 sales, enhances worker benefits
Starbucks’ sales climbed to a record $7.6 billion in its fiscal second quarter, but its profits took a hit from climbing labor costs
7:36PM ( 12 hours ago )
Airbnb posts much smaller Q1 loss, revenue doubles from 2021
Airbnb is getting a boost from the rebound in travel
6:53PM ( 12 hours ago )
Washington reaches $518M settlement with opioid distributors
Months into a complex trial over their role in flooding Washington with highly addictive painkillers, the nation’s three largest opioid distributors have agreed to pay the state $518 million
5:13PM ( 14 hours ago )
AP Business - Corporate News
Asian shares slip ahead of Fed interest rate decision
Shares are mostly lower in Asia, with markets in China, Japan and some other markets still closed for holidays
11:55PM ( 7 hours ago )
Live updates | Ukrainians wait in Mexico City for US entry
Hundreds of Ukrainian refugees are camping out in Mexico City and waiting for the U.S. government to allow them into the country
10:45PM ( 9 hours ago )
Live updates l Houchin wins GOP Indiana congressional race
Former state Sen. Erin Houchin has won the crowded Republican primary for an open congressional seat from a solidly GOP district in southern Indiana
10:18PM ( 9 hours ago )
AP Business - Industries
Pfizer profit soars in first quarter, revises 2022 forecast
Sales of Pfizer’s COVID-19 vaccine and treatment pushed the drugmaker well past expectations in the first quarter, as profit grew 61%
1:42PM ( 18 hours ago )
Change at the top for Biogen after Alzheimer's drug flops
Biogen is looking for a new CEO less than a year after its launch of its Alzheimer’s drug Aduhelm largely fizzled
1:29PM ( 18 hours ago )
Pfizer hopes to submit little-kid vaccine data by early June
Pfizer now hopes to tell U.S. regulators how well its COVID-19 vaccine works in the littlest kids by early June
1:12PM ( 18 hours ago )
AP Business - Health Care
Russia pounds Ukraine, targeting supply of Western arms
Russian forces pounded targets across Ukraine, taking aim at supply lines for foreign weapons in the west and intensifying an offensive in the east
7:18AM ( 32 minutes ago )
EU leader calls for Russian oil ban in new set of sanctions
The European Union’s leader has called on the 27-nation bloc to ban oil imports from Russia in a sixth package of sanctions targeting Moscow for its war in Ukraine
7:17AM ( 32 minutes ago )
Live updates | Russia warns West on Ukraine arms transports
The Russian defense minister has warned that Moscow will see any Western transports carrying weapons into Ukraine as a legitimate target
7:07AM ( 43 minutes ago )
CVS raises 2022 forecast after better-than-expected 1Q
COVID-19 vaccines and tests for the virus continued to boost CVS Health in the first quarter, and the health care giant finally raised its annual forecast
6:55AM ( 55 minutes ago )
EXPLAINER: What's the impact if Europe cuts off Russian oil?
The European Union's executive commission has proposed phasing out imports of Russian oil within six months
6:51AM ( 59 minutes ago )