CVS Health Sales Jump as Shoppers Stock Up on Medication

CVS Health Corp. saw higher sales in the most recent quarter as the coronavirus pandemic led people to fill more prescriptions and to spend more at the pharmacy chain’s stores.
Prescription volume grew more than 8% as customers rushed to stock up on medications amid the pandemic, either by refilling prescriptions early or switching to 90-day prescriptions. Same-store sales grew 8% and shoppers scooped up health-related items and other goods.
“We’re uniquely positioned to understand consumer and patient needs and how to address them,” CVS CEO Larry Merlo said in a statement.
CVS reported first-quarter net income of $2 billion, or $1.53 a share, compared with $1.4 billion, or $1.09 a share, in the comparable quarter a year before. Adjusted earnings were $1.91 a share.
Analysts were looking for earnings of $1.22 a share, or $1.62 a share on an adjusted basis.
CVS said its revenue rose 8.3% to $66.8 billion from the same period a year earlier, as revenue grew across all segments. Analysts were targeting $64.1 billion.
Revenue in its retail segment, which fulfills prescription medications and sells a range of merchandise, was $22.7 billion, up 7.7% compared with the year-earlier period. CVS has faced pressure in its retail-pharmacy business but has begun to fare better than rival Walgreens Boots Alliance Inc. Walgreens also generated stronger-than-expected sales during its latest quarter, though the company’s operating income fell 19%, in part because of reimbursement pressure on prescription drugs.
The company’s health-care benefits business, which includes Aetna, posted revenue of $19.2 billion, an increase of 7.4%.
Revenue grew 4.2%, to $35 billion in the pharmacy-services segment.

https://www.marketscreener.com/CVS-HEALTH-CORPORATION-12230/news/CVS-Health-Sales-Jump-as-Shoppers-Stock-Up-on-Medication-30549037/