CVS Health Corp. (CVS) - Get Report posted stronger-than-expected second quarter earnings Wednesday, and boosted its full-year profit guidance, sending shares sharply higher in pre-market trading.
CVS said adjusted earnings for the three months ending in June came in at $1.89 per share, up 11.8% from the same period last year and well ahead of the Street consensus forecast of $1.69 per share. Group revenues, CVS said, rose 35.2% from last year to $63.4 billion topping analysts' forecasts of a $62.66 billion tally, as Aetna sales added to the company' topline growth.
Looking into 2019, CVS narrowed and raised its full-year earnings forecast to a range of $6.89 to $7.00 per share, up from a prior estimate of $6.75 to $6.90, as last year's $69 billion purchase of Aetna.
"We posted strong second quarter results, with all of our businesses performing at or above expectations," said CEO Larry Merlo. "These results demonstrate our ability to execute on our strategic priorities to accelerate enterprise growth as we seek to fundamentally transform the consumer health experience."
"We made meaningful advancements on each of the priorities we outlined at our Investor Day in early June to differentiate, transform and modernize the delivery of care," he added. "While still early, we remain confident that we will be able to realize the potential of our innovative and powerful new business model to deliver enhanced value to our clients and the consumers we serve."
CVS shares were marked 5.3% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $57.00, a move that would trim the stock's year-to-date decline to around 13%.
Pharmacy Services revenues rose 4.2% to $34.8 billion, CVS said, "primarily due to brand name drug price inflation as well as increased total pharmacy claims volume, partially offset by continued price compression and an increased generic dispensing rate.
Retail sales rose 3.7% to $21.447 billion, even as same-store sale growth slowed to 3.8%. The group's healthcare benefits division saw sales surge from 764 million to $17.4 billion as it added Aetna's operations to its legacy business.
