People walk through a CVS Pharmacy store in the Manhattan neighborhood of New York City.
Shannon Stapleton | Reuters
CVS Health’s fourth-quarter revenue exceeded Wall Street expectations on Tuesday as pharmacy sales rose and expanded Covid-19 testing and vaccines.
The company’s shares rose 1.4% in pre-market trading.
This is what the company reported during the fourth fiscal quarter ended Dec. 31, compared to what analysts expected, according to a survey by analysts by Refinitiv:
- Earnings per share: $ 1.30 adjusted versus $ 1.24 projected
- Revenue: $ 69,555 million vs. $ 68.75 million projected
The pharmacy chain reported fourth-quarter net tax revenue of $ 975 million, or 75 cents per share, below $ 1.74 million or $ 1.33 per share a year earlier.
Excluding items, it earned $ 1.30 per share, exceeding the $ 1.24 per share expected by analysts surveyed by Refinitiv.
Revenue rose to $ 69.55 million, from $ 66.89 million a year earlier. This is above analysts ’expectations of $ 68.75 million.
Sales at the same store grew 5.3% over the three-month period compared to the same time last year. They jumped 7.5% in the pharmacy division as the volume of prescriptions increased, but dropped 1.8% in the store, as customers skipped visits and didn’t need to buy as much medication against the flu and cold during the pandemic.
CVS also shared its full-year guidelines for the next fiscal year. It projected earnings per share ranging from $ 6.06 to $ 6.22 and year-round adjusted earnings per share to $ 7.39 and $ 7.55. Its year-round cash flow from operations is expected to be between $ 12,000 and $ 12.5 billion.
CVS offers Covid-19 testing in many of its stores. The company said it has administered about 15 million tests nationwide. It has also administered more than 3 million Covid vaccines in more than 40,000 long-term care centers. The pharmacy chain and its competitor, Walgreens, reached an agreement with the federal government in October to provide the shots to staff and residents of nursing homes and assisted living facilities. Vaccinations at the facility began in December.
CVS is taking on a more important role in administering Covid vaccines to its stores. Last week, the federal government sent doses directly to retail pharmacy stores, including CVS locations in 11 states.
CVS CEO Karen Lynch said the chain will intensify its focus on offering a wider range of health care services, beyond filling prescriptions.
“Our goal is to make health care more accessible, more affordable and simpler,” he said in a press release. “To do this, we will accelerate the pace of our progress through specific investments in key areas that will drive our consumer-focused strategy.”
At the close of the market on Friday, CVS shares rose less than 1% over the past year. The company’s shares, which have a market value of $ 97.113 billion, touched a 52-week high of $ 77.23 in mid-January. It closed at $ 74.21 on Friday.
Read the full press release here.
This story is being developed and will be updated.