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A CVS pharmacy store in San Francisco.
David Paul Morris/Bloomberg
CVS Health
beat earnings estimates and raised its full-year guidance for the second quarter in a row, boosting the stock in premarket trading.
CVS
(ticker: CVS) posted adjusted profit of $2.40 a share, topping forecasts for $2.18, according to FactSet. Sales were $80.6 billion, above expectations for $76.4 billion and up 11% year over year.
The company raised its guidance for fiscal 2022, saying it now expects adjusted earnings per share of between $8.40 and $8.60. Previous guidance called for adjusted earnings to range between $8.20 and $8.40.
“Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments,” said CEO Karen Lynch.
Same-store sales increased by 8% in the second quarter on a yearly basis. Analysts were expecting sales to fall by 0.4%. A year ago, same-store sales rose by 12.3%.
Revenue from the company’s retail segment rose by 6.3% to $26.3 billion, driven by increased prescription and front store volume, including the sale of Covid-19 testing kits. This was partially offset by a decline in Covid-19 vaccines and diagnostic testing, the company said.
Shares of CVS rose 1.8% in premarket trading on Wednesday. The stock has fallen 7.6% this year.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
